Russia’s occupation of Ukraine Inflation is deeply rooted in countries around the world.
Against its background prices rose last year Supply chain bracketsGovt-19-related strikes and rising energy costs – issues that are expected to disappear in 2022.
Six months ago, the Organization for Economic Co-operation and Development estimated that none of its 38 members expected inflation to rise above 6 percent. The main exceptions are Turkey and Argentina, which are already battling epidemic-related runway inflation.
Since then, Sanctions against Russia, One of the best energy and grain producers in the world, is exaggerating the prices of food, fuel and fertilizers. Russian bombings, sieges and seizures cut off the flow Grains from UkraineAnother leading producer raises the fear of famine Poor food importing countries.
At the same time, China’s policy of locking up areas with Govt-19 eruptions has exacerbated the problem.
This week, the OECD announced Sober updates. In seven Eastern European countries, the inflation rate is now expected to cross double digits. The estimated rate for the Netherlands this year was almost three times 9.2 percent; Australia has doubled to 5.3 percent. And like the United States, Britain And German inflation rates have reached a four-decade high, which is higher than previous forecasts.
This will consume the income and savings of households while at the same time thwarting the efforts of companies to create investment and jobs.
Central banks in the US, UK, Australia and India have all recently moved aggressively to curb rapidly rising prices by raising interest rates. Even the European Central Bank, which has been reluctant to raise rates for fear of a recession, on Thursday Raises its core interest rate At a quarter point at its meeting next month, and may be even higher in September.
But there is a limit to what political and financial leaders can do about rising inflation – especially for a variety of reasons. In many regions, such as Europe, inflation is driven by significant increases in food and energy prices. Raising rates will not solve basic supply problems, the OECD warned.
In contrast, the organization blamed inflation in the United States to some extent. “Excess demand, ”Which is very responsive to a tight monetary policy. Compared to Europe, the US labor market is tight and nominal wage growth is high.
Although inflation is causing severe pain in some areas, the long-term forecast is very favorable. The World Bank expects global consumer price inflation to fall below 3 percent next year.
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