Countries around the world are responding to rising inflation primarily by lowering borrowing costs as inflation begins to ease from its recent highs. Central banks, including the US Federal Reserve and the European Central Bank, are expected to reduce interest rates this year following synchronized increases in response to previous inflationary pressures exacerbated by the pandemic and geopolitical events like the war in Ukraine [1][6]. 

Different nations are experiencing varying inflation challenges; for instance, the Fed has been aggressive with rate hikes, while the European Central Bank plans gradual increases. Policymakers are cautious, balancing the need to control inflation without severely impacting economic growth [2][4].

How are countries reacting to rising inflation?

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