Inflation has hit multi-decade highs in many countries, with Russia’s invasion of Ukraine pushing up food and energy prices along with real household incomes.
The latest figures for most of the world’s largest economies worry readers, with price pressures rising to multi-decade highs.
Central banks have responded by raising interest rates, although higher borrowing costs could exacerbate real income due to rising prices.
High inflation still based on a large geographical area. Consumer price growth has even begun to pick up in Asia, a region that until recently has largely been an outlier to the worldwide pattern.
This page provides a regularly updated visual narrative of Consumer price inflation around the world. This includes economists’ expectations for the future, suggesting inflation forecasts are being steadily revised for 2023, according to top forecasters polled by Consensus Economics.
While higher inflation is now forecast to persist into next year, expectations of higher interest rates have made the market more optimistic that price pressures can be contained in the medium term. The tightening of the central bank in recent months has led investors to reduce expectations for inflation to stay at five years from now.
However, higher interest rates also increase the risk of recession in some countries, with economists concerned return to the stagflation of the 1970s—a situation characterized by persistent price pressures and weak growth.
Rising energy prices caused inflation in many countries to rise, even before Russia invaded Ukraine. Daily data shows how pressure has increased following a conflict that has Europe worried about gas supplies in the coming quarters.
Higher inflation is also spreading beyond energy for many people other itemsespecially in countries where demand is strong enough for businesses to shift costs higher.
Rising prices limit what households can spend on goods and services. For the less well-off, this can lead to people finding it difficult to cover basic things like food and shelter.
Daily data on staples, such as the wholesale prices of breakfast ingredients, provide an up-to-date indicator of the pressures facing consumers. In developing countries, the wholesale cost of these ingredients has a greater impact on the final food price; Food also accounts for a larger share of household spending.
Another point of concern is property prices, especially for housing.
These have skyrocketed in many countries during the pandemic, fueled by extremely loose monetary policy, the desire of homeworkers for more space, and support programs. government income. However, higher mortgage rates could soon cool the pandemic-induced housing boom.
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