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After Russia’s invasion of Ukraine, inflation reached multi-decade highs in many countries. However, there are now signs of easing in inflation rates, particularly in countries where the war in Ukraine has not had as strong of an impact on energy and food prices. Economists and investors predict that inflation levels will stabilize over the next few years.
Please note that if you are unable to view the interactive graphic, it may be due to being offline or having JavaScript disabled in your browser.
Despite some improvements, high inflation remains a concern in various regions, including Asia. Central banks have responded by raising interest rates, although this action may further squeeze real incomes.
This page provides regular updates on consumer price inflation worldwide. Please note that if you are unable to view the interactive graphic, it may be due to being offline or having JavaScript disabled in your browser. The page also includes economists’ inflation projections for 2023, which have been revised upward for many countries, except for Germany.
Investors’ expectations regarding future inflation have shown no further increase, reflecting the more aggressive tightening actions of central banks and a weakening economic outlook. Some European countries have implemented fiscal measures to offset the rising energy costs.
The main driver of inflation in many countries, even prior to the conflict in Ukraine, was the rise in energy prices. The ongoing conflict has only intensified this pressure, as Europe seeks alternative gas supplies. However, wholesale prices have now eased due to weakened global demand and maximum capacity in European gas storage facilities.
Please note that if you are unable to view the interactive graphic, it may be due to being offline or having JavaScript disabled in your browser. The immediate effect of lower wholesale prices on consumer prices may vary, and household and business costs remain high in Europe due to the energy crisis, which is exacerbated by the region’s dependence on Russian gas.
Inflation has also affected various other consumer goods, with food prices being particularly impactful for the poorest consumers. Rising prices restrict households’ purchasing power for goods and services, and can result in difficulties for low-income individuals to afford basic necessities such as food and housing.
Please note that if you are unable to view the interactive graphic, it may be due to being offline or having JavaScript disabled in your browser. Daily data on staple goods, such as the wholesale price of breakfast ingredients, provide real-time insights into the pressures faced by consumers. While these pressures have eased in recent months, they remain at high levels.
In developing countries, the wholesale cost of staple ingredients has a larger influence on final food prices, as food constitutes a greater portion of household spending.
Another area of concern is asset prices, especially for housing. During the pandemic, house prices soared in many countries due to loose monetary policies, increased demand for larger homes among remote workers, and government support programs. However, higher mortgage rates are now causing a significant slowdown in house price growth in several countries.
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