The inflation crisis of 2021/22 is a global phenomenon, with almost every economy expected to experience inflation rates far higher than two percent across 2022. Inflation is currently high across many areas of the globe, even in regions that have not witnessed high inflation for several decades. Food and energy prices are responsible for a significant amount of the elevated inflation levels. Even when these two factors are removed from price calculations, however, core inflation is still running high. The recent surge has a multitude of interconnected factors behind it. Global supply chains have been blocked up since the start of the pandemic, while the war in Ukraine has exacerbated food and energy shortages. Interest rate hikes may help curb inflation, but it is likely to remain elevated for some time. Many economies could experience a recession going into 2023.
This report will give an overview of where inflation is high, why it is high, and when this period of raised inflation might end.