Inflation has reached multi-decade highs in many countries, and Russia’s invasion of Ukraine has squeezed real household incomes and pushed up energy and food prices.
The latest figures for most of the world’s largest economies make for alarming reading as price pressures rise to their highest levels in decades.
Central banks have responded by raising interest rates, but higher borrowing costs could exacerbate the pressure on real incomes from higher inflation.
high inflation It remains geographically widespread. Consumer price growth has also started to pick up in Asia, which until recently was an exception to the global pattern.
This page offers a visual narrative that is updated regularly Global consumer price inflationLeading forecasters polled by Consensus Economics, which includes economists’ expectations for the future, show a steady upward revision to inflation forecasts for 2023. .
Investor expectations for inflation five years out reflect that more aggressive central bank tightening will keep inflation lower in the medium term, while higher gas prices and volatility could push inflation higher. and has been volatile over the past few months.
Rising interest rates are increasing the likelihood of a recession in some countries, with economists return Stagflation of the 1970s — a situation characterized by persistent price pressure and low growth.
Rising energy prices caused inflation in many countries even before Russia invaded Ukraine. Daily data show how pressure is building against the backdrop of a conflict that fears Europe will have gas supplies over the next few quarters.
High inflation spreads to many people, not just energy other itemsespecially in countries where demand is strong enough for firms to pass on higher costs.
Rising prices limit the amount households can spend on goods and services. For those who are not wealthy, this can lead to people having trouble buying basic things such as food and housing.
Daily data on staples, such as wholesale prices of breakfast ingredients, provide the latest indicators of the pressures facing consumers. In developing countries, the wholesale cost of these raw materials has a large impact on final food prices. Food also accounts for a large proportion of household spending.
Another concern is property prices, especially homes.
These surged in many countries during the pandemic. This was boosted by ultra-accommodative monetary policy, the desire of telecommuters for more space, and the government’s income support scheme. But if mortgage rates rise, the pandemic-triggered housing boom could quickly cool off.
FT Survey: How are you coping with rising inflation?
We are examining the impact of rising costs of living on people around the world and would love to hear from our readers about what you are doing to combat the costs. simple survey.
https://www.ft.com/content/088d3368-bb8b-4ff3-9df7-a7680d4d81b2 Global Inflation Tracker: Compare Your Countries with Rising Prices