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Global Growth Outlook Downgraded with PPI Increasing

On June 10, 2026, the World Bank Group cut its 2026 global growth forecast to 2.5% — the weakest rate since the Covid-19 pandemic — as soaring energy prices from the Middle East war fuel a new round of inflation. The bank warned growth could fall as low as 1.3% if energy disruptions intensify and financial markets come under stress. The bank's 2026 inflation projection is now 4% — almost a full percentage point above last year's rate. 

In the US, the Producer Price Index PPI for final demand rose 1.1 percent in May, seasonally adjusted, the U.S. Department of Labor reported today. On an unadjusted basis, the index for final demand increased 6.5 percent for the 12 months ended in May, the largest 12-month rise since moving up 7.4 percent in November 2022.

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