Central banks have shown they can take forceful action to head off the most dramatic increase in inflation in a generation. They took steps to protect the purchasing power of people and companies. Although the last mile to return to price stability is not yet complete, the end is well in sight.

Inflation most hurts those who are least able to hedge against it. Intervention was needed to remedy what seemed a relentless surge in the cost of living. To restore price stability, central banks unleashed the biggest and most synchronised global monetary policy tightening in decades.