Inflation hits record high around the world

Stresses related to war in Ukraine making the world economy already severely hurt by COVID-19 wobble more because of supply chain disruptions. Many countries are struggling to cope with the problem inflationary galloping increase.

Inflation graphs in some major economies around the world show that most of them have reached record highs. In the US-European region and advanced economies, 60% of countries have annual inflation rates above 5%. According to the Bank for International Settlements this is the largest ratio since the 1980s.

Last month, US inflation was 8.5% – the highest since 1981. The US Labor Department said average hourly earnings rose 5.6% in March. But adjusted for inflation there is Mean wages fell by 2.7%. Or to put it simply, Americans’ wages are shrinking every month.

Inflation graphs in some major economies around the world have mostly reached record highs.

In the UK, inflation is at a three-decade high. In which, food prices increased by 5.9%, the highest in a decade. Most of the foods in the consumer price basket increased by more than 5%, including bread, meat, milk and fruit.

Rising consumer prices erode household incomes. Many predict that real household income in the UK will fall this year at the sharpest rate since the 1950s.

In Russia, inflation in this country has increased to 17.49%. This is the highest inflation in 20 years, amid the volatile ruble causing prices to skyrocket.

In the euro area inflation rose to 7.5% in March, up from 5.9% the previous month. High energy prices are the main cause. In Latin America, many countries have also announced the highest inflation rates in recent decades. In particular, monthly inflation in Brazil exceeded forecasts to the highest level in 28 years, while Chile recorded the highest monthly inflation in nearly 30 years.

In Asia, inflation in some countries such as China, India, Indonesia, South Korea… has recently increased stronger than forecast. Even in Japan – a country that once recorded extremely low inflation rates, there were signs of rising prices.

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