2021–2022 inflation surge

Short description: Ongoing global inflation above target

Inflation rate, United States and eurozone, January 2016 through June 2022 Inflation rates[1] Country/Region | 2020 | 2021

|
|

World | 1.9% | 3.4%
Europe/Central Asia | 1.2% | 3.1%
Latin America/Caribbean | 1.4% | 4.3%
Brazil | 3.2% | 8.3%
South Asia | 5.7% | 5.5%
Australia | 0.8% | 2.9%
South Korea | 0.5% | 2.5%
Japan | 0.0% | -0.2%
China | 2.4% | 1.0%
Canada | 0.7% | 3.4%
United Kingdom | 1.0% | 2.5%
United States | 1.2% | 4.7%

In early 2021, a worldwide increase in inflation began to occur. It has been attributed to various causes, including pandemic-related fiscal and monetary stimulus,[2][3] supply shortages (including chip shortages and energy shortages), price gouging and as of 2022, the Russian invasion of Ukraine.Cite error: Invalid `<ref>` tag; refs with no name must have content Debate arose over whether inflationary pressures were transitory or persistent; however, central banks started to raise policy rates in 2022. Many countries have seen their highest inflation in decades and their central banks have responded by aggressively increasing interest rates.[4][5][6]

## Contents

* 1 Background and causes
* 1.1 Monetary policy
* 1.2 Supply chain crisis
* 1.3 Price gouging
* 2 Transitory vs persistent debate
* 3 Impact of the 2022 Russian invasion of Ukraine
* 4 Impact on countries
* 4.1 North Africa and Middle East
* 4.2 North America
* 4.3 South America
* 4.4 Europe
* 4.5 Asia
* 4.6 Oceania
* 5 See also
* 6 References
* 7 External links

## Background and causes

Economists at Deloitte noted that consumer spending on goods moved in tandem with spending on services prior to the COVID-19 recession, but upon emerging from the recession consumers significantly shifted spending to goods, particularly in the United States. This shift placed stress on supply chains such that the supply of goods could not meet demand, resulting in price increases. They observed that in November 2021 inflation for durable goods was 14.9%, compared to 10.7% for consumable goods and just 3.8% for services in the United States; they noted similar results in several other major economies. They also noted that supply chain stresses increased prices for commodities and transportation, which are cost inputs for finished goods.[7]

In countries where food represents a larger part of the inflation basket, rising prices force low-income consumers to tighten their belts – crimping spending on other goods and slowing economic growth. "It looks like in those countries with high inflation, consumer spending has weakened because household spending power has taken a hit from rising prices," said William Jackson, chief emerging markets economist at Capital Economics consultancy. "And you've generally seen much more aggressive moves to tighten monetary policy."[8]

As of mid-2022, there was no consensus among economists as to the cause of the inflation surge. Several factors have been identified and discussed.

### Monetary policy

(Percent change from a year earlier)

M2 money supply

CPI

Core CPI

One theory, voiced by Stanford economist John B. Taylor[9] and Johns Hopkins economists Steve Hanke and Nicholas Hanlon,[10][11] is that the uptick in inflation in the US was due to the large increase in the money supply, when M2 grew at a monthly rate of between 22% and 31% in the early months of the pandemic in 2020. Many governments adopted similar stimulatory actions around the world[citation needed] to support the wellbeing of their populations early in the COVID-19 pandemic.[12][13]

### Supply chain crisis

Main article: Finance:2021–2022 global supply chain crisis

Some economists[14] attribute the US inflation surge to product shortages resulting from the global supply-chain problems, largely caused by the COVID-19 pandemic.[15] Another cause cited include strong consumer demand driven by historically robust job and nominal wage growth.[16] Higher demand caused by the $5tn government aid spending exacerbated supply-side issues in the US, contributing, according to the Federal Reserve Bank of San Francisco researchers, 3 percentage points by the end of 2021.[17] According to them, the spending measures might have been necessary to prevent deflation, which would've been harder to manage.[18]

### Price gouging

Some analysts argued that price gouging may have played a role in the inflation surge in the US. They noted that in recent decades major industries, notably retailing, had concentrated into oligopolies that dominated markets and consequently wielded higher pricing power. The analysts argued that in an inflationary environment, consumers know prices are increasing but do not have good knowledge of what reasonable prices should be, giving retailers an opportunity to raise consumer prices beyond the inflation they were seeing in their costs, thereby permanently locking in higher prices. There was anecdotal but inconclusive evidence this was happening, and most economists generally did not see gouging as a significant contributor to inflation at the time.[19][20][21]

## Transitory vs persistent debate

A debate arose among economists early in 2021 as to whether inflation was a transitory effect of the world's emergence from the pandemic, or whether it would be persistent. Some economists, such as Larry Summers and Olivier Blanchard warned of persistent inflation, while others, such as Paul Krugman and US Treasury Secretary Janet Yellen, were on "Team Transitory."[22] As 2021 turned to 2022, inflation continued to accelerate. In response, the Federal Reserve increased the fed funds rate by 25 basis points in March 2022, the first increase in three years, followed by 50 basis points in May, then another 75 basis points in June, moves that some analysts considered late and dramatic, and which might induce a recession. The June rate increase was the largest since 1994 and was followed by another 75 basis point increase the next month.[23] After Eurozone inflation hit a record high 8.1% in May, the European Central Bank announced in June it would raise rates in July by 25 basis points, the first increase in eleven years, and again in September by as much as 50 basis points; the ECB raised rates by 50 basis points in July.[24] After the Fed's third rate increase, Summers said "We are still headed for a pretty hard landing."[25]

## Impact of the 2022 Russian invasion of Ukraine

Natural gas prices in Europe and United States

National Balancing Point NBP (UK) natural gas prices

Europe TTF natural gas prices

United States Henry Hub natural gas prices

File:Fertilizer prices.webpFertilizer prices

DAP

Potassium chloride

Phosphorite

Triple Superphosphate

Urea

Mark Zandi, chief economist of Moody's Analytics, analyzed United States Consumer Price Index components following the May 2022 report that showed an 8.6% inflation rate in the US. He found that by then the 2022 Russian invasion of Ukraine was the principal cause of higher inflation, comprising 3.5% of the 8.6%. He said oil and commodities prices jumped in anticipation of and response to the invasion, leading to higher gasoline prices. Resulting higher diesel prices led to higher transportation costs for consumer goods, notably food.[26]

Russian gas supply curbs, which began in 2021, aggravated energy crunch caused by demand growth and global supply limitations during the post pandemic restrictions recovery. In Europe, gas prices increased by more than 450%, and electricity by 230% in less than a year.[27] On February 22, 2022, before the Russian invasion, the German Government froze the Nord Stream 2 pipeline between Russia and Germany ,[28] causing natural gas prices to rise significantly.[29]

On February 24, Russian military forces invaded Ukraine [30] to overthrow the democratically elected government, and replace it with a Russian puppet government.[31] Before the invasion, Ukraine accounted for 11.5% of the world's wheat crop market, and contributed 17% of the world's corn crop export market, and the invasion caused wheat and corn from Ukraine unable to reach international market, causing shortage, and result in dramatic rise in prices,[32] that exacerbated to foodstuffs and biodiesel prices.[33][34] Additionally, the price of Brent Crude Oil per barrel rose from $97.93 on February 25 to a high of $127.98 on March 8,[35] this caused petrochemicals and other goods reliant on crude oil to rise in price as well.[36][37]

The effect of sanctions on the Russian economy caused annual inflation in Russia to rise to 17.89%, its highest since 2002.[38] Weekly inflation hit a high of 0.99% in the week of April 8, bringing YTD inflation in Russia to 10.83%, compared to 2.72% in the same period of 2021.[38]

## Impact on countries

While most countries saw a rise in their annual inflation rate during 2021 and 2022, some of the highest rates of increase have been in Europe, Brazil , Turkey, the United States , and Israel.[39][40] By June 2022, nearly half of Eurozone countries had double-digit inflation, and the region reached an average inflation rate of 8.6%, the highest since its formation in 1999.[41] In response, at least 75 central banks around the world have aggressively increased interest rates.[42] However, the World Bank warns that combating inflation with rate hikes has increased the risk of a global recession.[43][44]

### North Africa and Middle East

Countries in North Africa were disproportionally affected by inflation. Tunisia went through a crisis triggered by soaring energy prices and unprecedented inflation of foods in 2022. Moroccan household finances also were negatively affected by imported inflation. Annual inflation rates in North African countries rose to 15.3 percent compared to 6.4 percent in 2021, according to the Central Agency for Public Mobilization and Statistics.[45][46][47]

In some North African countries, the inflation surge has encouraged hoarding practices by consumers. Price increases for basic food staples, such as coffee, were particularly high in parts of Asia and North Africa, where people spend a higher proportion of income on food and fuel than in the United States and Europe. Food producers of Nestle’s Middle East and North Africa (MENA) unit have noticed the stock-piling of non-perishable items, as a reaction to the surging inflation. Karim Al Bitar, head of consumer research and market intelligence at MENA said that the company is considering to make some products “more affordable” to consumers.[48]

### North America

Housing prices inflation from Q4 2020 to Q4 2021 in the United States
40%
20%

-20%
-40%  File:Cost of housing by State.webpCost of housing by State File:Average cost of rent in the US.webpAverage cost of rent in the US File:Food Price Index US.webpFood Price Index US

In the US, the Consumer Price Index rose 6.8% between November 2020 and November 2021, spurred by price increases for gasoline, food, and housing.[49] Higher energy costs caused the inflation to rise further in 2022,[50] reaching 9.1%, a high not seen since 1981.[51] In July 2022 the Fed increased the interest rate for the third time in the year,[52] yet inflation remained high outpacing the growth in wages[53] and spending,[54] and according to the Economic Policy Institute the minimum wage was worth less than any time since 1956 due to inflation,[55][56] nevertheless the hikes were seen as faster and sooner than the response by European Central Bank so while the euro fell the dollar remained relatively stronger helping it to be the more valuable one for the first time in 20 years.[57][58] On July 27 the Fed announced a fourth rate rise by 0.75 points bringing the rate to a range between 2.25% and 2.5%, although an expected move to combat the inflation the rise has been seen more cautiously as there are signs that the economy is entering a recession which the rate rises could potentially aggravate.[59][60][61] On July 28 data from the BEA showed that the economy shrunk for the second quarter in a row, which is commonly used to define a recession.[62][63][64] BLS data showed that inflation eased on July to 8.5%[65][66] from the 40 year peak reached on June at 9.1%.[67] In September the Fed increased the interest for a fifth time in the year reaching a 14 year high.[68]

Inflation is believed to have played a major role in a decline in the approval rating of President Joe Biden, who took office in January 2021, being net negative starting in October of that year.[69] Many Republicans have blamed the actions of Biden and fellow Democrats for fueling the surge.[70]

Canada also saw multi-decade highs in inflation, hitting 5.1% in February 2022[71] and further increasing to 6.7% two months later.[72] In April, inflation rose again to 6.8%,[73][74] before jumping to 7.7% in May, the highest ever since 1983.[75][76]

In July 2022, Mexico's INEGI reported a year-on-year increase in consumer prices of 8.15%, against a Central Bank target of 2%-4%.[77]

A recent analysis by the Federal Reserve Bank of Kansas City ascertained the role America is playing in the current inflationary trend worldwide. Before 2019, the U.S. was seen as a last resort for consumer spending during a global recession, but after 2020, U.S. exports have contributed to foreign inflation. At the same time, energy prices have gone up as well as the value of the United States dollar , which both increased monetary pressures on nations that mostly rely on energy imports. In effect, the strength of the U.S. dollar and sanctions on energy commodities have contributed to global inflation in 2022.[78]

### South America

In Brazil, inflation hit its highest rate since 2003—prices rose 10.74% in November 2021 compared to November 2020. Economists predicted that inflation has peaked and that in fact the economy may be headed for recession, in part due to aggressive interest rate increases by the central bank.[79]

In Argentina, a country with a chronic inflation problem, the interest rate was hiked to 69.5% in August as inflation has further deteriorated hitting a 20-year high at 70% and is forecasted to top 90% by the end of the year.[80]

Chile had low inflation for several years thanks to the monetary policy of its autonomous central bank. However, in 2022 there was a record intranual inflation of 14.1%, the highest in the last 30 years. There is a consensus among economists that Chilean inflation is mainly caused by endogenous factors, especially the aggressive expansionary policies during the COVID pandemic and the massive withdrawals from pension funds. Economists have also predicted a possible recession by 2023 due to high interest rates to combat inflation. [81][82]

### Europe

In the Netherlands, the average 2021 inflation rate was the highest since 2003.[83] With energy prices having increased by 75%, December saw the highest inflation rate in decades.[83]

In the UK, inflation reached a 40-year high of 10.1% in July, driven by food prices, and further increase is anticipated in October when higher energy bills are expected to hit.[84] The interest rate has been raised seven times, reaching 2.25% in September, and the Bank of England has warned the UK may already be in recession.[85]

In June 2022, the European Central Bank (ECB) decided to raise interest rates for the first time in more than 11 years due to the elevated inflation pressure.[86][87] In July, the euro fell below dollar for first time in 20 years, mainly due to fears of energy supply restrictions from Russia, but also because the ECB lagged behind the US, UK and other central banks in raising interest rates.[57][58] Eurozone inflation hit 9.1% and 10% in August and September respectively, the highest ever since the creation of the euro in 1999,[88][89] prompting the ECB to raise interest rates for a second time in the year to 1.25% in early September.[90] An estimated 70,000 people protested against the Czech government as a result of rising energy prices.[91][92]

### Asia

In Turkey, retail prices rose 9.65% in December compared to November, for an annual rate of 34%. Some of the largest increases were for electricity, natural gas, and gasoline. The economy was further strained by a currency crisis caused by a series of rate cuts by the central bank; the Turkish lira lost 44% of its value against the dollar during 2021.[93]

In June 2022, the Philippines recorded 6.1% inflation, its highest since October 2018. The Philippine Statistics Authority forecasted that the number would most likely be higher in the following months. President Ferdinand Marcos Jr. claimed that the record inflation rate was "not that high".[94]

### Oceania

Inflation in New Zealand exceeded forecasts in 2022 July, reaching 7.3% which is the highest since 1990.[95] Economists at ANZ reportedly said they expected faster interest rate increases to counteract inflationary pressures.[96]

In Fiji, inflation rose to 4.7% in April 2022 compared to -2.4% in 2021.[97] Food prices rose by 6.9% in April 2022, fuel increased by 25.2%, kerosene by 28.5% and gas by 27.7%.[98]

## See also

* Economic impact of the COVID-19 pandemic
* 2021 United Kingdom natural gas supplier crisis
* 2022 stock market decline
* 2020s commodities boom
* List of countries by inflation rate
* List of countries by central bank interest rates

## References

1. ↑ "Inflation rates". International Monetary Fund via World Bank. https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG.
2. ↑ Were The Stimulus Checks A Mistake?
3. ↑ Gharehgozli, O.; Lee, S. (2022). "Money Supply and Inflation after COVID-19". Economies 10 (5): 101. doi:10.3390/economies10050101.
4. ↑ Weber, Alexander (February 2, 2022). "Euro-Zone Inflation Unexpectedly Hits Record, Boosting Rate Bets". Bloomberg. https://www.bloomberg.com/news/articles/2022-02-02/euro-zone-inflation-unexpectedly-quickens-to-record-testing-ecb.
5. ↑ "India's Dec WPI inflation at 13.56% as firms fight rising costs". Reuters. January 14, 2022. https://www.reuters.com/business/indias-dec-wpi-inflation-eases-marginally-1356-yy-govt-2022-01-14/.
6. ↑ Kihara, Leika (January 14, 2022). "Japan's wholesale inflation at near record high on broad price gains". Reuters. https://www.reuters.com/markets/asia/japans-wholesale-prices-rise-10th-month-weighs-corp-margins-2022-01-14/.
7. ↑ Ira Kalish; Michael Wolf (February 18, 2022). "Global surge in inflation". Deloitte. https://www2.deloitte.com/xe/en/insights/economy/is-the-global-surge-in-inflation-here-to-stay.html.
8. ↑ "Rising costs: How emerging economies are being affected by inflation" (in en). https://www.weforum.org/agenda/2022/02/explainer-how-is-inflation-hitting-low-income-households-in-developing-nations/.
9. ↑ "Economy is strong but inflation is too high, says Stanford professor John Taylor". cnbc. https://www.cnbc.com/video/2022/02/25/economy-is-strong-but-inflation-is-too-high-says-stanford-professor-john-taylor.html.
10. ↑ Steve H. Hanke and Nicholas Hanlon. "Jerome Powell Is Wrong. Printing Money Causes Inflation.". Wall Street Journal. https://www.wsj.com/articles/powell-printing-money-supply-m2-raises-prices-level-inflation-demand-prediction-wage-stagnation-stagflation-federal-reserve-monetary-policy-11645630424.
11. ↑ Shawn Tulley. "Inflation jumps 8.5% to a 40-year high—and a Johns Hopkins economist says the Fed is wrong about the causes". Fortune. https://fortune.com/2022/04/13/record-inflation-8-5-economy-fed-wrong/.
12. ↑ Ron Surz. "Money Printing and Inflation: COVID, Cryptocurrencies and More". Nasdaq. https://www.nasdaq.com/articles/money-printing-and-inflation:-covid-cryptocurrencies-and-more.
13. ↑ "Nigeria: Inflation - Money Supply Hits N46.5 Trn, Clickbait 5 Years". Gale Academic OneFile. June 13, 2022. http://link.gale.com/apps/doc/A706979247/AONE?u=wikipedia&sid=ebsco&xid=6df40113.
14. ↑ "How the supply chain caused current inflation, and why it might be here to stay" (in en-us). November 10, 2021. https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay.
15. ↑ Austin, Craig (November 10, 2021). "How the supply chain caused current inflation, and why it might be here to stay". PBS. https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay.
16. ↑ * Van Dam, Andrew (January 13, 2022). "2021 shattered job market records, but it's not as good as it looks". The Washington Post. https://www.washingtonpost.com/business/2022/01/08/2021-shattered-records-but/.
* Jason Furman; Wilson Powell III (January 28, 2022). "US wages grew at fastest pace in decades in 2021, but prices grew even more". Petersen Institute for International Economics. https://www.piie.com/blogs/realtime-economic-issues-watch/us-wages-grew-fastest-pace-decades-2021-prices-grew-even-more.
17. ↑ Sherman, Natalie (14 June 2022). "Why is inflation in US higher than elsewhere?" (in en-GB). BBC News. https://www.bbc.co.uk/news/business-61569559.
18. ↑ "Why Is U.S. Inflation Higher than in Other Countries?". 28 March 2022. https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/.
19. ↑ Lopez, German (June 14, 2022). "Inflation and Price Gouging". The New York Times. https://www.nytimes.com/2022/06/14/briefing/inflation-supply-chain-greedflation.html.
20. ↑ Brooks, Khristopher J. (May 27, 2022). "Companies use inflation to hike prices and generate huge profits, report says". CBS News. https://www.cbsnews.com/news/retail-price-gouging-lowes-amazon-target-accountable-us/.
21. ↑ DePillis, Lydia (June 3, 2022). "Is 'Greedflation' Rewriting Economics, or Do Old Rules Still Apply?". The New York Times. https://www.nytimes.com/2022/06/03/business/economy/price-gouging-inflation.html.
22. ↑ Paul Krugman. "The Year of Inflation Infamy". The New York Times. https://www.nytimes.com/2021/12/16/opinion/inflation-economy-2021.html.
23. ↑ Smialek, Jeanna (July 27, 2022). "The Fed raises rates by three-quarters of a percentage point.". The New York TImes. https://www.nytimes.com/live/2022/07/27/business/fed-interest-rates#after-another-rate-increase-big-questions-remain-about-what-comes-next.
24. ↑ Amaro, Silvia (July 21, 2022). "European Central Bank surprises markets with larger-than-expected rate hike, its first in 11 years". CNBC. https://www.cnbc.com/2022/07/21/european-central-bank-raises-rates-by-50-basis-points-its-first-hike-in-11-years.html.
25. ↑ Multiple sources:
* Cox, Jeff (March 16, 2022). "Federal Reserve approves first interest rate hike in more than three years, sees six more ahead". https://www.cnbc.com/2022/03/16/federal-reserve-meeting.html.
* Cox, Jeff (May 4, 2022). "Fed raises rates by half a percentage point — the biggest hike in two decades — to fight inflation". https://www.cnbc.com/2022/05/04/fed-raises-rates-by-half-a-percentage-point-the-biggest-hike-in-two-decades-to-fight-inflation.html.
* Cox, Jeff (June 15, 2022). "Fed hikes its benchmark interest rate by 0.75 percentage point, the biggest increase since 1994". https://www.cnbc.com/2022/06/15/fed-hikes-its-benchmark-interest-rate-by-three-quarters-of-a-point-the-biggest-increase-since-1994.html.
* Megan Greene (January 7, 2022). "Betting on transitory US inflation is still valid". Financial Times. https://www.ft.com/content/62ef08f8-107e-4e80-b972-f624d7e1836e.
* Beilfuss, Lisa (June 17, 2022). "'We Are Still Headed for a Pretty Hard Landing,' Ex-Treasury Secretary Larry Summers Says". Barron's. https://www.barrons.com/articles/larry-summers-economy-fed-hard-landing-inflation-recession-51655402216.
* Ben White (June 17, 2022). "Inflation's main culprit? CEOs zero in on Powell's Fed". Politico. https://www.politico.com/news/2022/06/17/clearly-behind-the-curve-ceos-sour-on-powell-over-rate-hikes-00040254.
* "Europe's central bank to hike rates in July, 1st in 11 years". Associated Press. June 9, 2022. https://apnews.com/article/russia-ukraine-covid-politics-health-10bdb0c93b5a45d3cd51c76091997c62.
* Collinson, Stephen (June 1, 2022). "Yellen's words on inflation won't end America's price hikes". CNN. https://edition.cnn.com/2022/06/01/politics/yellen-biden-inflation-2022-midterms-analysis/index.html.
26. ↑ Mui, Christine (June 13, 2022). "Top economist Mark Zandi says forget Biden's stimulus—Putin's war in Ukraine is by far the biggest driver of inflation". Fortune. https://fortune.com/2022/06/13/mark-zandi-moodys-chief-economist-inflation-russia-invasion-ukraine/.
27. ↑ Liboreiro, Jorge; de Filippi, Alberto (2021-10-28). "Why Europe's energy prices are soaring and could get much worse". Euronews. https://www.euronews.com/my-europe/2021/10/28/why-europe-s-energy-prices-are-soaring-and-could-get-much-worse.
28. ↑ Marsh, Sarah; Chambers, Madeline (February 22, 2022). "Germany freezes Nord Stream 2 gas project as Ukraine crisis deepens" (in en). Reuters. https://www.reuters.com/business/energy/germanys-scholz-halts-nord-stream-2-certification-2022-02-22/.
29. ↑ "Natural Gas PRICE Today | Natural Gas Spot Price Chart | Live Price of Natural Gas per Ounce | Markets Insider" (in en). https://markets.businessinsider.com/commodities/natural-gas-price.
30. ↑ "Ukraine crisis: Russia orders troops into rebel-held regions" (in en-GB). BBC News. February 22, 2022. https://www.bbc.com/news/world-europe-60468237.
31. ↑ Kudlenko, Anastasiia. "Ukraine: Putin's desire to install a puppet government draws from the Bolshevik playbook" (in en). http://theconversation.com/ukraine-putins-desire-to-install-a-puppet-government-draws-from-the-bolshevik-playbook-178060.
32. ↑ Welle (www.dw.com), Deutsche. "Ukraine war increases global food insecurity | DW | March 21, 2022" (in en-GB). https://www.dw.com/en/ukraine-war-increases-global-food-insecurity/a-61206423.
33. ↑ Reuters (March 5, 2022). "Food prices jump 20.7% yr/yr to hit record high in Feb, U.N. agency says" (in en). Reuters. https://www.reuters.com/world/food-prices-hit-record-high-february-un-agency-says-2022-03-04/.
34. ↑ "Biodiesel prices (SME & FAME)" (in en). February 19, 2015. https://www.neste.com/investors/market-data/biodiesel-prices-sme-fame.
35. ↑ "Crude Oil Price Today | BRENT OIL PRICE CHART | OIL PRICE PER BARREL | Markets Insider" (in en). https://markets.businessinsider.com/commodities/oil-price.
36. ↑ Dolar, Veronika. "Soaring crude prices make the cost of pretty much everything else go up too because we almost literally eat oil" (in en). http://theconversation.com/soaring-crude-prices-make-the-cost-of-pretty-much-everything-else-go-up-too-because-we-almost-literally-eat-oil-179809.
37. ↑ "Petrochemical prices expected to keep rising" (in en). https://globuc.com/news/petrochemical-prices-to-rise/.
38. ↑ 38.0 38.1 Reuters (April 13, 2022). "Inflation in Russia hits highest in more than 20 years" (in en). Reuters. https://www.reuters.com/world/europe/inflation-russia-hits-highest-more-than-20-years-2022-04-13/.
39. ↑ DeSilver, Drew (November 24, 2021). "Inflation has risen around the world, but the U.S. has seen one of the biggest increases". Pew Research Center. https://www.pewresearch.org/fact-tank/2021/11/24/inflation-has-risen-around-the-world-but-the-u-s-has-seen-one-of-the-biggest-increases/.
40. ↑ "Eurozone inflation hits record 8.1% amid rising energy costs". May 31, 2022. https://apnews.com/article/russia-ukraine-european-union-inflation-bd5e9345f5da5d44d78c612a6b9c0008.
41. ↑ Eddy, Melissa (July 1, 2022). "Eurozone inflation rises to 8.6 percent, the highest ever, driven by high energy prices". The New York Times. https://www.nytimes.com/2022/07/01/business/eurozone-inflation-june.html.
42. ↑ Smialek, Jeanna; Nelson, Eshe (July 17, 2022). "Global Central Banks Ramp Up Inflation Fight". The New York Times. https://www.nytimes.com/2022/07/17/business/economy/global-central-banks-inflation.html.
43. ↑ "World Bank sees rising risk of global recession in 2023". Reuters. 2022-09-15. https://www.reuters.com/markets/rates-bonds/world-bank-sees-rising-risk-global-recession-2023-2022-09-15/.
44. ↑ Guénette, Justin-Damien; Kose, M. Ayhan; Sugawara, Naotaka (2022-09-15). ﻿Is a Global Recession Imminent?﻿ (Report). World Bank. https://openknowledge.worldbank.org/bitstream/handle/10986/38019/Global-Recession.pdf. Retrieved 2022-09-16.
45. ↑ "World Bank: Tunisia’s trade deficit continues to widen amid soaring inflation". northafricapost.com. Retrieved 12 September 2022.
46. ↑ "Moroccan household finances hit by imported inflation – planning agency" Reuters. Retrieved 12 September 2022.
47. ↑ "Egypt’s inflation hits 4-year high amid surge in food prices" arabnews. Retrieved 12 September 2022.
48. ↑ "Nestle adapts as hoarding picks up in Asia, North Africa" Reuters Business Unit. Retrieved 20 September 2022.
49. ↑ Aratani, Lauren (December 10, 2021). "US inflation rate rose to 6.8% in 2021, its highest since 1982". The Guardian. https://www.theguardian.com/business/2021/dec/10/us-inflation-rate-rise-2021-highest-increase-since-1982.
50. ↑ Tan, Su-Lin (July 14, 2022). "Yellen warns inflation in the U.S. is 'unacceptably high'". CNBC. https://www.cnbc.com/2022/07/14/yellen-warns-inflation-in-the-us-is-unacceptably-high.html. "Almost half of the increase in prices in the latest inflation numbers came from high energy costs, Yellen added."
51. ↑ Cox, Jeff (July 13, 2022). "Inflation rose 9.1% in June, even more than expected, as consumer pressures intensify". CNBC. https://www.cnbc.com/2022/07/13/inflation-rose-9point1percent-in-june-even-more-than-expected-as-price-pressures-intensify.html.
52. ↑ "US makes biggest interest rate rise in almost 30 years" (in en-GB). BBC News. June 15, 2022. https://www.bbc.com/news/business-61804877.
53. ↑ Harrison, David (May 6, 2022). "Pay Raises Are Historically High. Inflation Is Still Eclipsing Those Gains." (in en-US). The Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/inflation-eclipses-aprils-historically-strong-wage-gains-11651854549.
54. ↑ Dougherty, Danny (July 17, 2022). "Inflation Has Outpaced Wage Growth. Now It's Cutting Into Spending." (in en-US). The Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/inflation-has-outpaced-wage-growth-now-its-cutting-into-spending-11658050200.
55. ↑ Konish, Lorie (July 15, 2022). "High inflation leads federal minimum wage to reach lowest value since 1956, report finds" (in en). https://www.cnbc.com/2022/07/15/inflation-leads-federal-minimum-wage-to-reach-lowest-value-since-1956.html.
56. ↑ "The value of the federal minimum wage is at its lowest point in 66 years" (in en-US). https://www.epi.org/blog/the-value-of-the-federal-minimum-wage-is-at-its-lowest-point-in-66-years/.
57. ↑ 57.0 57.1 "Euro falls below dollar for first time in 20 years" (in en-GB). BBC News. July 13, 2022. https://www.bbc.com/news/business-62153251.
58. ↑ 58.0 58.1 "Eurozone raises interest rates for first time in 11 years" (in en-GB). BBC News. July 21, 2022. https://www.bbc.com/news/business-62240730.
59. ↑ "Federal Reserve issues FOMC statement" (in en). https://www.federalreserve.gov/newsevents/pressreleases/monetary20220727a.htm.
60. ↑ "US makes huge interest rate rise to tame soaring prices" (in en-GB). BBC News. July 27, 2022. https://www.bbc.com/news/business-62310354.
61. ↑ "Fed to Inflict More Pain on Economy as It Readies Big Rate Hike". https://www.bloomberg.com/news/articles/2022-07-24/fed-to-inflict-more-pain-on-economy-as-it-readies-big-rate-hike.
62. ↑ "Gross Domestic Product, Second Quarter 2022 (Advance Estimate) | U.S. Bureau of Economic Analysis (BEA)". https://www.bea.gov/news/2022/gross-domestic-product-second-quarter-2022-advance-estimate.
63. ↑ "US economy shrinks again sparking recession fears" (in en-GB). BBC News. July 28, 2022. https://www.bbc.com/news/business-62310355.
64. ↑ "The risk of redefining recession". May 5, 2008. https://money.cnn.com/2008/05/05/news/economy/recession/.
65. ↑ "US inflation eases in July as petrol prices drop" (in en-GB). BBC News. August 10, 2022. https://www.bbc.com/news/business-62482143.
66. ↑ "US Inflation Runs Cooler Than Forecast, Easing Pressure on Fed" (in en). Bloomberg.com. August 10, 2022. https://www.bloomberg.com/news/articles/2022-08-10/us-inflation-decelerates-more-than-forecast-on-gas-price-drop.
67. ↑ "US prices rising at fastest rate for 40 years" (in en-GB). BBC News. July 13, 2022. https://www.bbc.com/news/business-62148662.
68. ↑ "Fed rate hike: US interest rates hit 14-year high in inflation battle" (in en-GB). BBC News. 2022-09-21. https://www.bbc.com/news/business-62973376.
69. ↑ Enten, Harry (December 21, 2021). "Biden's economic ratings are worse than Carter's". CNN. https://www.cnn.com/2021/12/21/politics/joe-biden-jimmy-carter-economic-ratings/index.html.
70. ↑ Guida, Victoria (December 9, 2021). "Another eye-popping inflation reading is ahead. Next year could look very different.". Politico. https://www.politico.com/news/2021/12/09/biden-inflation-next-year-523984.
71. ↑ Evans, Pete (February 16, 2022). "Canada's inflation rate rises to 5.1% — highest since 1991". Canadian Broadcasting Corporation. https://www.cbc.ca/news/business/canada-inflation-january-1.6353464.
72. ↑ Evans, Pete (April 20, 2022). "Canada's inflation rate jumps to new 31-year high of 6.7%". Canadian Broadcasting Corporation. https://www.cbc.ca/news/business/canada-inflation-1.6424388.
73. ↑ "Consumer Price Index, April 2022". Government of Canada. May 18, 2022. https://www150.statcan.gc.ca/n1/daily-quotidien/220518/dq220518a-eng.htm.
74. ↑ Argitis, Theophilos (May 18, 2022). "Canadian Inflation Hits New Three-Decade High of 6.8% on Housing". Bloomberg News (Bloomberg L.P.). https://www.bloomberg.com/news/articles/2022-05-18/canada-s-inflation-rises-to-new-three-decade-highs-on-housing.
75. ↑ "Consumer Price Index, May 2022". Government of Canada. June 22, 2022. https://www150.statcan.gc.ca/n1/daily-quotidien/220622/dq220622a-eng.htm.
76. ↑ Evans, Pete (June 22, 2022). "Canada's inflation rate now at 7.7% — its highest point since 1983". CBC News (Canadian Broadcasting Corporation). https://www.cbc.ca/news/business/inflation-rate-canada-1.6497189.
77. ↑ De Haldevang, Max (August 11, 2022). "Mexico Raises Key Interest Rate to Highest Ever as Inflation Accelerates". Bloomberg. https://www.bloomberg.com/news/articles/2022-08-11/banxico-raises-key-rate-to-highest-ever-as-inflation-accelerates.
78. ↑ "Price Pressures for U.S. Exporters and a Strong Dollar Have Increased Inflation in Foreign Countries" kansascityfed.org Economic Bulletin International Inflation. Retrieved 12 September 2022.
79. ↑ Rosati, Andrew (December 10, 2021). "Brazil's Inflation Likely Peaked After Hitting 18-Year High". Bloomberg. https://www.bloomberg.com/news/articles/2021-12-10/brazil-s-consumer-prices-rise-less-than-forecast-in-november.
80. ↑ "Argentina rate hiked to 69.5% as inflation hits 20-year high" (in en-GB). BBC News. August 12, 2022. https://www.bbc.com/news/business-62514970.
81. ↑ Chile, C. N. N.. "Inflación anual de Chile es la más alta en 30 años" (in es). https://www.cnnchile.com/economia/inflacion-anual-chile-30-anos_20220909/.
82. ↑ S.A.P, El Mercurio (2022-09-09). "La mayor en 30 años: Expertos analizan compleja persistencia inflacionaria y las acciones del Banco Central para controlarla | Emol.com" (in Spanish). https://www.emol.com/noticias/Economia/2022/09/09/1072368/economistas-politica-monetaria-inflacion.html.
83. ↑ 83.0 83.1 "Torenhoge inflatie in december, cijfer over heel 2021 naar 2,7 procent" (in nl). NOS. January 11, 2022. https://nos.nl/artikel/2412657-torenhoge-inflatie-in-december-cijfer-over-heel-2021-naar-2-7-procent.
84. ↑ "UK inflation: Food costs push price rises to new 40-year high" (in en-GB). BBC News. August 17, 2022. https://www.bbc.com/news/business-62562025.
85. ↑ "UK may already be in recession - Bank of England" (in en-GB). BBC News. 2022-09-22. https://www.bbc.com/news/business-62991376.
86. ↑ Bank, European Central (June 9, 2022) (in en). Monetary policy decisions. https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220609~122666c272.en.html.
87. ↑ "Eurozone interest rates set to rise for first time in 11 years" (in en-GB). BBC News. June 9, 2022. https://www.bbc.com/news/business-61749090.
88. ↑ Ward-Glenton, Hannah. "Euro zone inflation hits another record of 9.1% as food and energy prices soar" (in en). https://www.cnbc.com/2022/08/31/euro-zone-inflation-hits-another-record-of-9point1percent-as-food-and-energy-prices-soar.html.
89. ↑ "Eurozone inflation hits record 10%, highest in the history of the euro". 2022-09-30. https://www.dw.com/en/eurozone-inflation-hits-record-10-highest-in-the-history-of-the-euro/a-63293956.
90. ↑ "Eurozone interest rates in record rise to fight inflation" (in en-GB). BBC News. 2022-09-08. https://www.bbc.com/news/business-62837336.
91. ↑ "Tens of thousands protest in Prague against Czech government, EU and NATO". 2022-09-04. https://www.reuters.com/world/europe/tens-thousands-protest-prague-against-czech-government-eu-nato-2022-09-03/.
92. ↑ "Outcry grows as European billpayers struggle amid historic energy crisis" english.news.cn. Retrieved 13 September 2022.
93. ↑ "Turkey hikes energy prices; Istanbul monthly inflation highest in decade". WTVB. January 1, 2022. https://wtvbam.com/2022/01/01/turkey-hikes-energy-prices-istanbul-monthly-inflation-highest-in-decade/.
94. ↑ Cuyco, Jan (July 6, 2022). "That high: What you need to know about inflation in the Philippines" (in en-US). https://interaksyon.philstar.com/trends-spotlights/2022/07/06/221496/inflation-philippines-explainer/.
95. ↑ Brockett, Matthew (July 17, 2022). "New Zealand Inflation Outpaces Forecasts at Fresh 32-Year High". Bloomberg. https://www.bloomberg.com/news/articles/2022-07-17/new-zealand-inflation-accelerates-more-than-expected-to-7-3.
96. ↑ Janda, Michael (July 17, 2022). "Federal Treasurer Jim Chalmers warns on budget outlook, New Zealand inflation surge hints at even bigger interest rate rises". ABC News. https://www.abc.net.au/news/2022-07-18/treasurer-jim-chalmers-warns-on-rates-budget-nz-inflation-surges/101247330.
97. ↑ Fijivillage. "Annual headline inflation rises to 4.7% in April" (in en). https://www.fijivillage.com/news/Annual-headline-inflation-rises-to-47-in-April-54xrf8/.
98. ↑ Fijivillage. "Food prices rose by 6.9% in April" (in en). https://www.fijivillage.com/news/Food-prices-rose-by-69-in-April-4x58fr/.

## External links

* Ross, Jenna (June 24, 2022). "Interest Rate Hikes vs. Inflation Rate, by Country" (in en-US). https://www.visualcapitalist.com/interest-rate-hikes-vs-inflation-rate-by-country/.

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