Просмотр кода страницы Английская Википедия:2021–2023 inflation

{{Английская Википедия/Панель перехода}}
{{Short description|Ongoing global inflation above target}}
{{Use mdy dates|date=September 2022}}

[[File:Inflation rate, United States and eurozone, January 2018 through October 2023.png|thumb|300px|Inflation rate, United States and eurozone, January 2018 through October 2023]]

{| class="wikitable sortable plainrowheaders floatright"
|+ Inflation rates<ref>{{Cite news |title=Inflation rates |publisher=International Monetary Fund via World Bank |url=https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG |url-status=live |archive-url=https://web.archive.org/web/20211206025027/https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG |archive-date=December 6, 2021}}</ref>
|-
! Country/Region
! scope="col" | 2020
! scope="col" | 2021
! scope="col" | Aug 2022
|-
! scope="row" | Europe/Central Asia
| 1.2% || 3.1%|| 9.1%
|-
! scope="row" | Latin America/Caribbean
| 1.4% || 4.3% || 9.9%
|-
! scope="row" | Brazil
| 3.2% || 10.1% || 8.7%
|-
! scope="row" | Argentina
| 40.0% || 48.4% || 94.8%
|-
! scope="row" | South Asia
| 5.7% || 5.5% || 4.5%
|-
! scope="row" | Australia
| 0.8% || 2.9% || 7.8%
|-
! scope="row" | South Korea
| 0.5% || 2.5% || 5.6%
|-
! scope="row" | Japan
| 0.0% || –0.2% || 3.0%
|-
! scope="row" | China
| 2.4% || 1.0% || 2.3%
|-
! scope="row" | Canada
| 0.7% || 3.4% || 7.6%
|-
! scope="row" | United Kingdom
| 1.0% || 2.5% || 9.9%
|-
! scope="row" | United States
| 1.2% || 4.7% || 8.2%
|-
! scope="row" | Turkey
| 14.6% || 36.1% || 80.2%
|- style="background: #eaecf0;" class="sortbottom"
! scope="row" | '''World'''
| '''1.9%''' || '''3.4%''' || '''8%'''
|}
A worldwide increase in [[inflation]] began in mid-2021, with many countries seeing their highest inflation rates in decades. It has been attributed to various causes, including [[List of COVID-19 pandemic legislation|pandemic-related]] economic dislocation, supply chain problems, the [[fiscal policy|fiscal]] and monetary [[stimulus (economics)|stimuli]] provided in 2020 and 2021 by governments and [[central bank]]s around the world in response to the pandemic, and [[price gouging]]. Recovery in demand through 2021 ultimately led to historic and broad [[2021–2022 global supply chain crisis|supply shortages]] (including [[2020–present global chip shortage|chip shortages]] and [[2021–2022 global energy crisis|energy shortages]]). Worldwide construction sectors were also hit.

In early 2022, the [[Russian invasion of Ukraine]]'s effect on global [[Price of oil|oil prices]], [[natural gas]], [[fertilizer]], and [[2022 food crises|food prices]] further exacerbated the situation.<ref>Multiple sources:
* {{cite news |title=Were The Stimulus Checks A Mistake? |url=https://fivethirtyeight.com/features/were-the-stimulus-checks-a-mistake/ |work=FiveThirtyEight |date=April 26, 2022|author1=Santul Nerkar|author2=Amelia Thomson-DeVeaux}}
* {{cite journal|last1=Gharehgozli|first1=O.|last2=Lee|first2= S.|title=Money Supply and Inflation after COVID-19|journal=Economies|date=2022|volume=10|issue=5|page=101|doi=10.3390/economies10050101|doi-access=free}}
* {{cite news|last1=Van Dam|first1=Andrew|title=2021 shattered job market records, but it's not as good as it looks|url=https://www.washingtonpost.com/business/2022/01/08/2021-shattered-records-but/|newspaper=The Washington Post|date=January 13, 2022|archive-date=April 15, 2022|archive-url=https://web.archive.org/web/20220415193954/https://www.washingtonpost.com/business/2022/01/08/2021-shattered-records-but/|url-status=live}}{{better source needed|date=August 2022}}
* {{cite news |last1=Lynch |first1=David |title=Biden's rescue plan made inflation worse but the economy better |url=https://www.washingtonpost.com/us-policy/2022/10/09/inflation-economy-biden-covid/ |newspaper=The Washington Post |date=October 9, 2022}}</ref> Higher gasoline prices were a major contributor to inflation as oil producers saw record profits. Debate arose over whether inflationary pressures were transitory or persistent, and to what extent price gouging was a factor. All Central banks (except for the [[Bank of Japan]] which has kept its interest rates steady at –0.1%) responded by aggressively increasing [[interest rate]]s.<ref>{{Cite web |last=Weber |first=Alexander |date=February 2, 2022 |title=Euro-Zone Inflation Unexpectedly Hits Record, Boosting Rate Bets |url=https://www.bloomberg.com/news/articles/2022-02-02/euro-zone-inflation-unexpectedly-quickens-to-record-testing-ecb |url-status=live |archive-url=https://web.archive.org/web/20220212182256/https://www.bloomberg.com/news/articles/2022-02-02/euro-zone-inflation-unexpectedly-quickens-to-record-testing-ecb |archive-date=February 12, 2022 |publisher=Bloomberg }}</ref><ref>{{Cite web |last=<!--Not stated--> |date=January 14, 2022 |title=India's Dec WPI inflation at 13.56% as firms fight rising costs |url=https://www.reuters.com/business/indias-dec-wpi-inflation-eases-marginally-1356-yy-govt-2022-01-14/ |url-status=live |archive-url=https://web.archive.org/web/20220212182259/https://www.reuters.com/business/indias-dec-wpi-inflation-eases-marginally-1356-yy-govt-2022-01-14/ |archive-date=February 12, 2022 |publisher=Reuters }}</ref><ref>{{Cite web |last=Kihara |first=Leika |date=January 14, 2022 |title=Japan's wholesale inflation at near record high on broad price gains |url=https://www.reuters.com/markets/asia/japans-wholesale-prices-rise-10th-month-weighs-corp-margins-2022-01-14/ |url-status=live |archive-url=https://web.archive.org/web/20220212182257/https://www.reuters.com/markets/asia/japans-wholesale-prices-rise-10th-month-weighs-corp-margins-2022-01-14/ |archive-date=February 12, 2022 |publisher=Reuters }}</ref><ref>{{cite web|url=https://apnews.com/article/why-is-us-inflation-so-high-4b603a7fff0503360d5cc17a82f17ab1|title=As the causes of US inflation grow, so do the dangers|author=Christopher Rugaber|website=[[Associated Press]] |date=July 13, 2022 }}</ref> The inflation rate in the United States and the [[eurozone]] began slowing in the second half of 2022, continuing into 2023.

==Background and causes==
{{Globalise|section|US|date=November 2022}}
{{See also|2021–2023 global energy crisis|2022–2023 food crises}}
Consumer spending{{where|date=November 2022}} on goods moved in tandem with spending on services (see [[goods and services]]) prior to the [[COVID-19 recession]], but upon emerging from the recession consumers shifted spending towards goods and away from services, particularly in the United States.<ref name=deloitte/> This shift placed stress on [[supply chain]]s, such that the supply of goods could not meet demand, resulting in price increases. In November 2021 inflation in the United States was 14.9% for [[durable goods]], compared to 10.7% for [[Consumables|consumable goods]] and 3.8% for services.<ref name=deloitte/> Similar situations occurred in several other major economies.{{which|date=November 2022}} Supply chain stresses increased prices for commodities and transportation, which are cost inputs for [[finished goods]].<ref name=deloitte>{{Cite news |first1=Ira |last1=Kalish |first2=Michael |last2=Wolf |date=February 18, 2022 |title=Global surge in inflation |publisher=[[Deloitte]] |url=https://www2.deloitte.com/xe/en/insights/economy/is-the-global-surge-in-inflation-here-to-stay.html |url-status=live |archive-url=https://web.archive.org/web/20220620111910/https://www2.deloitte.com/xe/en/insights/economy/is-the-global-surge-in-inflation-here-to-stay.html |archive-date=June 20, 2022}}</ref>

In countries where food constituted a large part of the inflation increase,{{where|date=November 2022}} rising prices forced low-income consumers to reduce spending on other goods, thereby slowing [[economic growth]]. "In those countries with high inflation, consumer spending has weakened because household spending power has taken a hit from rising prices," said [[William Jackson (economist)|William Jackson]] of Capital Economics, "And you've generally seen much more aggressive moves to tighten [[monetary policy]]."<ref>{{Cite web |title=Rising costs: How emerging economies are being affected by inflation |url=https://www.weforum.org/agenda/2022/02/explainer-how-is-inflation-hitting-low-income-households-in-developing-nations/ |url-status=live |archive-url=https://web.archive.org/web/20220616144357/https://www.weforum.org/agenda/2022/02/explainer-how-is-inflation-hitting-low-income-households-in-developing-nations |archive-date=June 16, 2022 |website=World Economic Forum |date=February 23, 2022 |language=en}}</ref>

In June 2022, [[The Atlantic]] published an editorial article critical towards the [[U.S. Department of the Treasury]] controlling inflation. In 2021, [[Janet Yellen]] called the risk of inflation "small" and "manageable", and equally [[Federal Reserve Chairman]] [[Jerome Powell]] thought inflation would be "transitory", even as inflation rose above 6 percent. In 2023, the [[International Monetary Fund]] ascertained that "food and energy are the main drivers of this inflation", as rising prices continue to squeeze living standards not only in North America but worldwide.<ref>Surowiecki, James (June 10, 2022). [https://www.theatlantic.com/ideas/archive/2022/06/what-is-causing-inflation-janet-yellen-jerome-powell/661237/ "How Did They Get Inflation So Wrong?"] ''The Atlantic''. Accessed 24 March 2023.</ref><ref>[https://www.imf.org/en/Blogs/Articles/2022/09/09/cotw-how-food-and-energy-are-driving-the-global-inflation-surge "How Food and Energy are Driving the Global Inflation Surge"] ''imf.org''. Accessed 24 March 2023.</ref>

Six out of ten (59%) EU enterprises were concerned about energy prices in 2023, and five out of ten (47%) were concerned about uncertainty, with some country variations.<ref name=":178">{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20230285-econ-eibis-2023-eu |title=EIB Investment Survey 2023 - European Union overview |date=2023-10-12 |publisher=European Investment Bank |isbn=978-92-861-5609-0 |language=EN}}</ref> Energy cost rises were more common in EU businesses than in US firms (93% vs. 83%).<ref name=":1782">{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20230285-econ-eibis-2023-eu |title=EIB Investment Survey 2023 - European Union overview |date=2023-10-12 |publisher=European Investment Bank |isbn=978-92-861-5609-0 |language=EN}}</ref><ref>{{Cite web |title=Study on Energy Prices, Costs and Subsidies and their Impact on Industry and Households |url=https://www.enerdata.net/about-us/company-news/energy-prices-and-costs-in-europe.pdf}}</ref> Manufacturing businesses were the most likely to have encountered a 25% or more rise in energy spending, while the construction sector had the lowest number of firms suffering a 25% or greater increase in energy spending, despite the fact that more than half of firms reported this.<ref name=":1783">{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20230285-econ-eibis-2023-eu |title=EIB Investment Survey 2023 - European Union overview |date=2023-10-12 |publisher=European Investment Bank |isbn=978-92-861-5609-0 |language=EN}}</ref><ref>{{Cite web |last=Sante |first=Gerben Hieminga, Maurice van |title=The sectors most affected by soaring energy prices |url=https://think.ing.com/articles/the-sectors-most-affected-by-soaring-energy-prices/ |access-date=2023-10-24 |website=ING Think |language=en}}</ref><ref>{{Cite web |title=World Energy Transitions Outlook 2022 |url=https://www.irena.org/Digital-Report/World-Energy-Transitions-Outlook-2022 |access-date=2023-10-24 |website=www.irena.org |language=en}}</ref>

===Fiscal and monetary policy===
{{See also|United States Consumer Price Index}}
{{Needs expansion|reason=we need more sources for a discussion of the fiscal and monetary stimuli applied and how these specifically increased prices of certain goods/services/homes/stocks|date=August 2023}}

Among the factors contributing to the surge of inflation were the unprecedented levels of fiscal and monetary stimulus enacted to sustain household incomes and the liquidity of financial institutions in the 2020-2021 period. Many governments around the world adopted such stimulatory actions early in the COVID-19 pandemic.<ref>{{Cite web |title=Policy Responses to COVID19 |url=https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 |access-date=2022-10-18 |website=IMF |language=en}}</ref><ref>{{cite web |url=https://nymag.com/intelligencer/2020/05/were-paying-for-coronavirus-stimulus-by-printing-money.html |title=We're Paying for Coronavirus Stimulus by Printing Money. And That's Fine! |last=Levitz |first=Eric |date=2020-05-15 |publisher=[[New York (magazine)|New York]] |access-date=2023-06-27}}</ref><ref name="nasdaq 2021">{{cite news|url=https://www.nasdaq.com/articles/money-printing-and-inflation:-covid-cryptocurrencies-and-more|title=Money Printing and Inflation: COVID, Cryptocurrencies and More|publisher=Nasdaq|author=Ron Surz}}</ref><ref name="Nigeria">{{cite journal|title=Nigeria: Inflation - Money Supply Hits N46.5 Trn, Clickbait 5 Years|website=Allafrica.com |date=June 13, 2022|publisher=Gale Academic OneFile|url=http://link.gale.com/apps/doc/A706979247/AONE?u=wikipedia&sid=ebsco&xid=6df40113}}</ref>

Some immediate actions were taken by banking systems across the country to combat the inflation surge, as most banks today target the rate of inflation in a country as their primary way of measuring economic flow for monetary policy. When inflation is present banks will make changes to their monetary policy by increasing interest rates or making changes to other policies. Higher interest rates make borrowing more expensive, reducing consumption. This is put into place purposely to maintain a level of consumption that will contribute to a steady level of inflation or decrease it, this is also known as [[inflation targeting]].<ref>{{Cite web |title=Contractionary Monetary Policy |url=https://corporatefinanceinstitute.com/resources/economics/contractionary-monetary-policy/ |access-date=2022-11-14 |website=Corporate Finance Institute |language=en-US}}</ref>

U.S. President Joe Biden said in August 2023 that his [[Inflation Reduction Act]] was inaptly named because it had  "less to do with reducing inflation than it has to do with providing alternatives that generate economic growth,". The [[Congressional Budget Office]] had projected the law would have negligible effect on inflation, and it did not appear to reduce inflation at all. Contrary to Republican predictions, it also did not appear to have increased inflation.<ref>{{cite news |title=Yes, inflation is down. No, the Inflation Reduction Act doesn't deserve the credit |url=https://apnews.com/article/biden-inflation-reduction-climate-anniversary-9950f7e814ac71e89eee3f452ab17f71. |publisher=Associated Press |date=August 13, 2023|author1=Josh Boak|author2=Paul Wiseman}}</ref>

===Supply chain crisis===
{{Main|2021–2023 global supply chain crisis}}
Some economists<ref>{{Cite web |date=November 10, 2021 |title=How the supply chain caused current inflation, and why it might be here to stay |url=https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay |access-date=August 26, 2022 |website=PBS NewsHour |language=en-us}}</ref> attribute the U.S. inflation surge to product shortages resulting from the [[2021–2022 global supply chain crisis|global supply-chain problems]], itself largely caused by the COVID-19 pandemic.<ref>{{Cite news |last=Austin |first=Craig |date=November 10, 2021 |title=How the supply chain caused current inflation, and why it might be here to stay |work=PBS |url=https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay |url-status=live |archive-url=https://web.archive.org/web/20220103090531/https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay |archive-date=January 3, 2022}}</ref> This coincided with strong consumer demand, driven by low unemployment and improved financial conditions following the pandemic.<ref>* {{Cite news |last=Van Dam |first=Andrew |date=January 13, 2022 |title=2021 shattered job market records, but it's not as good as it looks |newspaper=The Washington Post |url=https://www.washingtonpost.com/business/2022/01/08/2021-shattered-records-but/ |url-status=live |archive-url=https://web.archive.org/web/20220415193954/https://www.washingtonpost.com/business/2022/01/08/2021-shattered-records-but/ |archive-date=April 15, 2022}}
* {{cite news|title=US wages grew at fastest pace in decades in 2021, but prices grew even more|url=https://www.piie.com/blogs/realtime-economic-issues-watch/us-wages-grew-fastest-pace-decades-2021-prices-grew-even-more|publisher=Petersen Institute for International Economics|date=January 28, 2022|author1=Jason Furman|author2=Wilson Powell III|archive-date=June 6, 2022|archive-url=https://web.archive.org/web/20220606130820/https://www.piie.com/blogs/realtime-economic-issues-watch/us-wages-grew-fastest-pace-decades-2021-prices-grew-even-more|url-status=live}}</ref> The higher demand caused by the U.S. government's $5 trillion aid spending exacerbated supply-side issues in the United States; according to the [[Federal Reserve Bank of San Francisco]] researchers, this contributed 3 percentage points to inflation by the end of 2021.<ref name="Sherman22">{{cite web |last=Sherman |first=Natalie |date=14 June 2022 |title=Why is inflation in US higher than elsewhere? |url=https://www.bbc.co.uk/news/business-61569559 |work=BBC News |language=en-GB |access-date=14 June 2022}}</ref> They argued that the spending measures were nevertheless necessary to prevent [[deflation]], which would've been harder to manage than inflation.<ref name="Jorda22">{{cite web |author1=Jordà, Òscar |author2=Liu, Celeste |author3=Nechio, Fernanda |author4=Rivera-Reyes, Fabián |title=Why Is U.S. Inflation Higher than in Other Countries? |url=https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/ |website=Federal Reserve Bank of San Francisco |date=28 March 2022}}</ref>

Consumer prices have reached an all-time high within the last thirty years, soaring by 6.2% from the previous year, things like restaurant prices to clothes and the most popular being fuel, have drastically increased.<ref>{{Cite web |date=2021-11-10 |title=How the supply chain caused current inflation, and why it might be here to stay |url=https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay |access-date=2022-11-14 |website=PBS NewsHour |language=en-us}}</ref> Fuel prices rose by 49% from January to June 2022 in the United States.<ref>{{Cite web |title=Record Breaking Increases in Motor Fuel Prices in 2022 {{!}} Bureau of Transportation Statistics |url=https://www.bts.gov/data-spotlight/record-breaking-increases-motor-fuel-prices-2022#:~:text=From%20January%20to%20June%202022,%20the%20price%20of,stay-at-home%20orders%20in%20response%20to%20COVID-19%20(figure%201). |access-date=2022-11-14 |website=www.bts.gov}}</ref> All these skyrocketing statistics are due to the impact the pandemic and the impact the pandemic has had on things like consumer demand. During the pandemic, the amount of workers that were working worldwide plunged and had an immediate impact on the United States, less than a third of the global population has been vaccinated, this directly affects the U.S. because in countries that are leaders in supplying the United States in shoes and clothes like Vietnam are having factory hub shortages due to not having enough vaccinated workers.

In June 2022, [[BlackRock]] CEO Larry Fink argued that consumer demand in the United States had remained steady compared to pre-pandemic years, with supply-chain issues overseas being the primary cause of the post-pandemic inflation surge. He attributed this to some countries taking longer (than the U.S.) to resume economic activity, thereby disrupting international trade.<ref>{{Citation |title=BlackRock CEO Larry Fink on Inflation, ESG Investing |url=https://www.youtube.com/watch?v=BnNbZmE3beA |language=en |access-date=2022-10-17}}</ref>

===Price gouging, windfall profits, "greedflation"===
{{Dispute about|whether increasing profits in anticipation of future cost increases is price gouging|Removal of sources, political bias in lead, and terminology|date=June 2023}}
In the United States, some [[Democratic Party (United States)|Democratic]] politicians{{ r | NYT_2022-06-14 | p=1 | q=In recent months, some Democrats have landed on a new culprit: price gouging. ... The White House has backed the claim, and congressional Democrats have introduced bills that target price gouging. ... For Democrats, it is a convenient explanation as inflation turns voters against President Biden. It lets Democrats deflect blame from their pandemic relief bill, the American Rescue Plan, which experts say helped increase prices. And it lets them recast inflation as the fault of monopolistic corporations — which progressives have long railed against.}} {{ r | BB_2022-05-19 | p=1 | q=It's part of a broader narrative that President Joe Biden and his party has championed that a swath of companies -- from energy firms to meat packers -- is taking advantage of pandemic-related disruptions to jack up prices all the more in an effort to boost profits. But most economists, including many aligned with Democrats, counter that there's little evidence such practices are behind the inflation crisis.}} and other observers have contended that [[price gouging]] or "greedflation" exacerbated the inflation surge in the United States.{{ r | NYT_2022-06-14 | p=1 | q=In recent months, some Democrats have landed on a new culprit: price gouging. ... The White House has backed the claim, and congressional Democrats have introduced bills that target price gouging. ... For Democrats, it is a convenient explanation as inflation turns voters against President Biden. It lets Democrats deflect blame from their pandemic relief bill, the American Rescue Plan, which experts say helped increase prices. And it lets them recast inflation as the fault of monopolistic corporations — which progressives have long railed against.}}<ref name=CBS_2022-05-27>{{Cite news |last=Brooks |first=Khristopher J. |date=May 27, 2022 |title=Companies use inflation to hike prices and generate huge profits, report says |publisher=CBS News |url=https://www.cbsnews.com/news/retail-price-gouging-lowes-amazon-target-accountable-us/ |url-status=live |archive-url=https://web.archive.org/web/20220625121623/https://www.cbsnews.com/news/retail-price-gouging-lowes-amazon-target-accountable-us/ |archive-date=June 25, 2022 | quote=Some of the nation's largest retailers have been using soaring inflation rates as an excuse to raise prices and rake in billions of dollars in additional profit, a corporate watchdog group charged on Friday.  ... The report highlights an ongoing debate about the causes of inflation, with some consumer advocates arguing that corporations are using inflation as a justification for passing on even higher price hikes to consumers. ... To be sure, inflation is rising sharply due to a number of underlying economic issues, such as supply-chain bottlenecks, labor shortages and strong demand from consumers. }}</ref><ref name=NYT_2022-06-03>{{Cite news |last=DePillis |first=Lydia |date=June 3, 2022 |title=Is 'Greedflation' Rewriting Economics, or Do Old Rules Still Apply? |work=The New York Times |url=https://www.nytimes.com/2022/06/03/business/economy/price-gouging-inflation.html |url-status=live |archive-url=https://web.archive.org/web/20220625122819/https://www.nytimes.com/2022/06/03/business/economy/price-gouging-inflation.html |archive-date=June 25, 2022 | quote=When thinking about greedflation, it's helpful to break it down into three questions: Are companies charging more than necessary to cover their rising costs? If so, is that enough to meaningfully accelerate inflation? And is all this happening because large companies have market power they didn't decades ago? ... There is not much disagreement that many companies have marked up goods in excess of their own rising costs. ... When all prices are rising, consumers lose track of how much is reasonable to pay.  ... But most of the public argument has been about whether companies with more market share have been affecting prices once goods are finished and delivered. And that's where many economists become skeptical, noting that if these increasingly powerful corporations had so much leverage, they would have used it before the pandemic. }}</ref> They argue that the market concentration which has occurred in recent decades in some major industries, especially retailing, has given companies the ability to wield near-monopolistic [[Market power|pricing power]].{{ r | NYT_2022-06-03 }} Many  economists{{Who|date=May 2023}} considered this a fringe theory and have responded by noting that if these large corporations indeed had so much market power, they could have used it to increase prices at any time, regardless of the pandemic.{{ r | NYT_2022-06-03 }}

Several economists have stated that price gouging could be a minor contributor to continuing inflation, but it is not one of the major underlying causes that started this surge.<ref name=NYT_2022-06-14>{{Cite news |last=Lopez |first=German |date=June 14, 2022 |title=Inflation and Price Gouging - We look at whether "greedflation" is causing higher prices. |work=The New York Times |url=https://www.nytimes.com/2022/06/14/briefing/inflation-supply-chain-greedflation.html |url-status=live |archive-url=https://web.archive.org/web/20220625122822/https://www.nytimes.com/2022/06/14/briefing/inflation-supply-chain-greedflation.html |archive-date=June 25, 2022 | quote=But inflation gives greedy, monopolistic companies a chance to take advantage, said [[Lindsay Owens]], the executive director of the left-leaning Groundwork Collaborative. Profiteering "is an accelerant of price increases," she told me. "It is not the primary cause." ... More recent developments have also weakened the greedflation theory. Inflation has remained high ... But the stock market has plummeted; ... If the pursuit of profits were driving more inflation, you would not expect to see that.}}</ref>{{r|CBS_2022-05-27}}{{r|NYT_2022-06-03}}<ref name=BB_2022-05-19>{{cite news | url=https://www.bloomberg.com/news/articles/2022-05-19/-greedflation-pits-democrats-against-like-minded-economists | title=Democrats' 'Greedflation' Claims Run Up Against Scant Evidence - Some Democrats accuse companies of bilking US consumers | last1=Smith | first1=Molly | last2=Wasson | first2=Erik  | newspaper=[[Bloomberg News]] | date=2022-05-19 | quote=Many Democrats blame price-gouging companies for the worst surge in Americans' cost of living in more than a generation. But economists, including several who are left-leaning, disagree. }}</ref> Justin Wolfers, an economist at the University of Michigan quotes [[Jason Furman]], who served as chair of the [[Council of Economic Advisers]] under President [[Barack Obama|Obama]] said, "Blaming inflation on [corporate] greed is like blaming a plane crash on gravity. It is technically correct, but it entirely misses the point."<ref name=NPR_2022-11-29 >{{ cite news | url=https://www.npr.org/2022/11/29/1139342874/corporate-greed-and-the-inflation-mystery | title=The mystery of rising prices. Are greedy corporations to blame for inflation? | last=Vanek Smith  | first=Stacy | newspaper=[[NPR]] | date=2022-11-29 | quote=Wolfers says companies are always trying to charge as much as they possibly can. In fact, the only reason we're not all paying $800 for a pair of socks or a cheeseburger is simply due to greed in another form: competition. ... "Inflation is coming from demand," says Wolfers. In spite of inflation, demand hasn't really blinked. Companies have been raising prices and we have been paying them. In fact, in many parts of the economy, spending has been rising right along with prices. ... And when our buying slows down, Wolfers says, companies will start lowering prices to entice us to buy: Prices will fall and inflation will ease. But, until demand drops, companies will push prices up as much as they can. It's elementary. }}</ref> Wolfers states that companies will always charge the highest prices possible, but that competition keeps prices in check.{{ r | NPR_2022-11-29 }} In the current situation, consumers have continued buying as prices have risen, showing that inflation is coming from consumer demand.{{ r | NPR_2022-11-29 }} He also says that corporate profits have been high because while consumer prices have risen 7.7% (slightly less than wholesale costs at >8%), wage increases (5%) have lagged behind the increase in prices, with the difference going to profits, a situation he sees as temporary.{{r|NPR_2022-11-29}}

Economists have stated that during times of high inflation, consumers know prices are increasing but do not have a good understanding of what reasonable prices should be, giving retailers the opportunity to raise prices faster than the cost inflation they are experiencing, resulting in larger profits.{{ r | NYT_2022-06-14 | p=1 | q=In recent months, some Democrats have landed on a new culprit: price gouging. ... The White House has backed the claim, and congressional Democrats have introduced bills that target price gouging. ... For Democrats, it is a convenient explanation as inflation turns voters against President Biden. It lets Democrats deflect blame from their pandemic relief bill, the American Rescue Plan, which experts say helped increase prices. And it lets them recast inflation as the fault of monopolistic corporations — which progressives have long railed against.}}{{ r | CBS_2022-05-27 | NYT_2022-06-03 }}<ref name="Guardian_2023-03-24" >{{ cite news | url=https://www.theguardian.com/business/2023/mar/24/greedflation-are-large-firms-using-crises-as-cover-to-push-up-their-profits | title=Greedflation: are large firms using crises as cover to push up their profits? | last=Inman | first=Phillip | newspaper=[[The Guardian]] | date=2023-03-24 | quote=Andrew Bailey, the Bank of England governor, says he has no evidence that excessive profits are pushing up inflation beyond where it would be if companies simply passed on extra costs to consumers, ... Albert Edwards, a senior analyst at Société Générale, ... "Companies [have] under the cover of recent crises, pushed margins higher," he said in a note. "And, most surprisingly, they still continue to do so, even as their raw material costs fall away. Consumers are still ‘tolerating' this ‘excuseflation', possibly because excess [government] largesse has provided households with a buffer. ... Isabella Weber, an economist at the University of Massachusetts Amherst, has shown which kinds of companies are able to benefit from a crisis, giving academic support for what she considers a rational capitalist reaction to a crisis, one that allows them to make even bigger profits when consumers are primed to expect prices to rise in leaps and bounds. }}</ref> One example of this was the meat industry, where profits went up industry-wide as prices went up, because demand never decreased.<ref name=CBS_2022-03-09 >{{ cite news | url=https://www.cbsnews.com/news/meat-prices-pandemic-inflation-corporate-greed/ | title=Inflation or "corporate greed"? Meat prices increased by double digits during pandemic | last=Bojorquez  | first=Manuel | newspaper=[[CBS news]] | date=2022-03-09 | access-date= | archive-url= | archive-date= | pages= | quote=According to quarterly reports for Tyson, the nation's largest meat processor, the company posted $3 billion in profit in 2021. ... Other major meat suppliers are also posting similar profits. Some analysts like Salvador believe the numbers don't add up. ... But what we see at the same time is that their profitability has been able to increase because the demand increases for their products have more than offset their cost increases. ... Salvador said there is nothing to keep the prices from increasing as long as "there isn't competition that will help drive down the prices so that they have a reason to actually be more reasonable." }}</ref>

A 2021 analysis conducted by ''The New York Times'' found that [[profit margin]]s across more than 2,000 publicly traded companies were well above the pre-pandemic average during the year, as corporate profits reached a record high.<ref name=NYT_2022-05-31 >{{ cite news | url=https://www.nytimes.com/2022/05/31/business/stock-market-company-profits.html | title=After a Bumper 2021, Companies Might Struggle to Increase Profits - Businesses face headwinds as demand weakens, the Federal Reserve raises rates and government stimulus programs end. | last1=Eavis | first1=Peter | last2=Talmon | first2=Joseph Smith | newspaper=[[New York Times]] | date=2022-05-31 | quote=A New York Times analysis of over 2,000 publicly traded companies outside the financial sector found that most of them increased sales faster than expenses, a remarkable feat when the cost of wages, raw materials and components was rising and supply chains were out of whack. As a result, profit margins, which measure how much money a business makes on each dollar of sales, rose well above the prepandemic average. On the whole, companies made an estimated $200 billion in additional operating profits last year because of that increase in margins. }}</ref><ref>{{cite news |last1=Phillips |first1=Matt |title=Corporate profits hit a new record high in 2021 |url=https://www.axios.com/2022/03/31/corporate-profits-new-record-high-2021 |work=Axios |date=March 31, 2022}}</ref> Economists at the [[University of Massachusetts Amherst]] found that in 2022 profit margins of US companies reached their highest level since the aftermath of World War II.<ref>{{cite news |title=Central bankers warn companies on fatter profit margins |url=https://www.ft.com/content/a35d1da4-60f6-4b34-9c04-a5c4f3b4d2cc |work=Financial Times |date=March 29, 2023|author1=Martin Arnold|author2=Patricia Nilsson|author3=Colby Smith|author4=Delphine Strauss}}</ref> [[European Central Bank]] economists found in May 2023 that businesses were using the surge as a rare opportunity to boost their profit margins, finding it was a bigger factor than rising wages in fueling inflation during the second half of 2022.<ref>{{cite news |last1=Hannon |first1=Paul |title=Why Is Inflation So Sticky? It Could Be Corporate Profits |url=https://www.wsj.com/articles/why-is-inflation-so-sticky-it-could-be-corporate-profits-b78d90b7 |work=The Wall Street Journal |date=May 3, 2023|quote=Inflation has proved more stubborn than central banks bargained for when prices started surging two years ago. Now some economists think they know why: Businesses are using a rare opportunity to boost their profit margins...According to economists at the ECB, businesses have been padding their profits. That, they said, was a bigger factor in fuelling inflation during the second half of last year than rising wages were}}</ref>

[[UBS#Global Wealth Management|UBS Global Wealth Management]] chief economist [[Paul Donovan (economist)|Paul Donovan]] said this has happened because post-pandemic household balance sheets have kept [[consumer spending]] demand strong enough to encourage producers to raise prices faster than costs, and because consumers have been gullible enough to find exaggerated narratives justifying such price hikes plausible: "Consumers seem to be buying stories that seem to justify price increases, but which really serve as cover for profit margin expansion."<ref>{{cite news |last1=Donovan |first1=Paul |title=Fed should make clear that rising profit margins are spurring inflation |url=https://www.ft.com/content/837c3863-fc15-476c-841d-340c623565ae |access-date=12 February 2023 |work=Financial Times |date=2 November 2022}}</ref>

In January 2023, the [[Federal Reserve Bank of Kansas City]], released a study which stated that "...markup growth likely contributed more than 50 percent to inflation in 2021, a substantially higher contribution than during the preceding decade. However, the markup itself is determined by a host of unobservable factors, …  We conclude that an increase in markups likely provides a signal that price setters expect persistent increases in their future costs of production."<ref name="ksfed">{{Cite journal |last1=Glover |first1=Andrew |last2=Mustre-del-Río |first2=José |last3=von Ende-Becker |first3=Alice |date=2023-01-12 |title=How Much Have Record Corporate Profits Contributed to Recent Inflation? - Firms raised markups during 2021 in anticipation of future cost pressures, contributing substantially to inflation. |url=https://www.kansascityfed.org/documents/9329/EconomicReviewV108N1GloverMustredelRiovonEndeBecker.pdf |journal=The Federal Reserve Bank of Kansas City Economic Review |doi=10.18651/er/v108n1glovermustredelriovonendebecker |s2cid=256654064 |issn=0161-2387 }}</ref>

[[Robert Reich]], who worked under President [[Bill Clinton]] as [[Labor Secretary]], stated, "Nobody believes that price gouging is the main cause of inflation...The question really is whether corporate pricing power is aggravating the situation. And there's a great deal of evidence it is."{{ r | BB_2022-05-19}}

A 2022 Working Paper by the [[International Monetary Fund]] explores implementation of [[windfall profit tax]]es, which have gained renewed interest following the COVID-19 pandemic, the war in Ukraine, and subsequent surges in energy and food prices. The paper discusses the potential of such taxes as a tool for efficiently taxing [[economic rent]]s, which are often a result of monopolistic power or unexpected events like pandemics, war, or natural disasters, and contribute to windfall profits. Such profits have raised public and policy concerns about price gouging, where firms are perceived to be profiting excessively from unforeseen circumstances.<ref>{{cite journal |last1=Hebous |first1=Shafik |last2=Prihardini |first2=Dinar |last3=Vernon |first3=Nate |title=Excess Profit Taxes: Historical Perspective and Contemporary Relevance |journal=IMF Working Papers |date=2022 |volume=2022 |issue=187 |page=1 |doi=10.5089/9798400221729.001 |url=https://www.elibrary.imf.org/view/journals/001/2022/187/article-A001-en.xml |access-date=December 12, 2023}}</ref>

A May 2023 ''New York Times'' story reported that despite the costs of doing business falling in recent months, many large corporations have continued to raise prices, contributing to the recent inflation surge. The prices of oil, transportation, food ingredients, and other raw materials have decreased as the shocks from the pandemic and the Ukraine war have faded. However, many businesses have maintained or even increased their prices, bolstering their profits and potentially keeping inflation high. This strategy could pressure the Federal Reserve to keep raising interest rates, increasing the likelihood of an economic downturn. Analysts suggest that the continued high consumer prices are due to several factors, including increased demand for goods and services as households emerge from the pandemic, constrained supply chains, and consumers' willingness to spend more due to government stimulus payments, investment gains, pay raises, and low-interest mortgage refinancing. One investment firm estimates that these spending habits may change this summer as the bottom 25% of income earners fully deplete their pandemic savings.  Some economists warn that wealthier households are affected less by inflation, with higher prices encouraging poorer consumers to substitute for less expensive purchases.<ref>{{cite news |last1=Smith |first1=Talmon Joseph |last2=Rennison |first2=Joe |title=Companies Push Prices Higher, Protecting Profits but Adding to Inflation |date=May 30, 2023 |url=https://www.nytimes.com/2023/05/30/business/economy/inflation-companies-profits-higher-prices.html |work=The New York Times |accessdate=31 May 2023}}</ref>

An [[International Monetary Fund]] study published in June 2023 found that rising corporate profits accounted for almost half of the increase in [[euro area]] inflation during the preceding two years.<ref>{{cite news |title=Europe's Inflation Outlook Depends on How Corporate Profits Absorb Wage Gains |url=https://www.imf.org/en/Blogs/Articles/2023/06/26/europes-inflation-outlook-depends-on-how-corporate-profits-absorb-wage-gains |publisher=[[International Monetary Fund]] |date=June 26, 2023|author1=Niels-Jakob Hansen|author2=Frederik Toscani|author3=Jing Zhou|quote=As the Chart of the Week shows, the higher inflation so far mainly reflects higher profits and import prices, with profits accounting for 45 percent of price rises since the start of 2022. That's according to our new paper, which breaks down inflation, as measured by the consumption deflator, into labor costs, import costs, taxes, and profits. Import costs accounted for about 40 percent of inflation, while labor costs accounted for 25 percent. Taxes had a slightly deflationary impact.}}</ref>

According to a 2023 article in ''The Economist,'' there has been a notable rise in market concentration across various sectors, leading to significantly higher profits for dominant firms, especially in Western economies. This trend has been linked to concerns about greed-fueled price increases, particularly in sectors like energy and healthcare where large firms have been able to collect substantial economic rents.<ref>{{cite news |title=Is big business really getting too big?|url=https://www.economist.com/business/2023/07/12/is-big-business-really-getting-too-big |newspaper=[[The Economist]] |date=July 12, 2023 |archive-url=https://web.archive.org/web/20230716103725/https://www.economist.com/business/2023/07/12/is-big-business-really-getting-too-big |access-date=December 12, 2023|archive-date=July 16, 2023 }}</ref>

==== Oil companies ====
The healthcare industry, which has become highly consolidated over previous decades like the oil industry, and has until recently had prices continuously rising faster than inflation, has not experienced recent price inflation, whereas the oil industry has.{{ r | NYT_2022-06-14 | p=1 | q=Hospitals are highly consolidated, yet health care prices have risen more slowly than overall inflation over the past year. Health care prices are historically unusual; for most of the past few decades, they have risen more quickly than inflation. But their recent relative slowdown suggests that if greedflation is real, it is not a major factor across every part of the economy. }}
{{ r | NYT_2022-06-03 | p=1 | q=Jan De Loecker, a professor at KU Leuven in Belgium who was a co-author of a seminal paper on the pernicious effects of rising market concentration, doubts that concentration worsens price increases across the board. "Just think about U.S. health care and the oil market — the stories there are so radically different," Dr. De Loecker said. "But inflation is a basket of goods that consumers draw from. So the idea that there's one story that explains rising prices in both is not a good way to think about it." }}

Shortly after initial energy price shocks caused by the [[Russian invasion of Ukraine]] subsided, oil companies found that supply chain constrictions, already exacerbated by the ongoing global [[COVID-19 pandemic]], supported price inelasticity, i.e., they began lowering prices to match the [[price of oil]] when it fell much more slowly than they had increased their prices when costs rose.<ref>{{cite news |last1=Cronin |first1=Brittany |title=The good times are rolling for Big Oil. 3 things to know about their surging profits |url=https://www.npr.org/2022/05/07/1097177459/big-oil-exxon-earnings-gasoline-prices-crude |access-date=25 May 2022 |work=NPR |date=7 May 2022 |language=en |archive-date=May 21, 2022 |archive-url=https://web.archive.org/web/20220521123900/https://www.npr.org/2022/05/07/1097177459/big-oil-exxon-earnings-gasoline-prices-crude |url-status=live }}</ref>

The major American and British oil producers ([[Big Oil]]) reported record profits in 2022.<ref>{{cite news |last1=Bussewitz |first1=Cathy |title=Unprecedented profit for major oil drillers as prices soared |url=https://apnews.com/article/sports-swimming-e71ce380df372fa2ba257a3175ff0f49 |publisher=Associated Press |date=July 29, 2022}}</ref><ref>{{cite news |last1=Simonetti |first1=Isabella |title=Exxon and Chevron Report Record Profits on High Oil and Gas Prices |url=https://www.nytimes.com/2022/07/29/business/exxon-chevron-profit.html |work=The New York TImes |date=July 29, 2022}}</ref><ref>{{cite news |last1=Klauss |first1=Clifford |title=Oil Giants, With Billions in Profits, Face Criticism and an Uncertain Outlook |url=https://www.nytimes.com/2022/10/28/business/energy-environment/exxon-chevron-profit-biden.html |work=The New York TImes |date=October 28, 2022}}</ref> Amid longstanding constraints in refinery capacity, [[Crack spread|refinery profit margins]] were higher than their historical averages.<ref>{{cite news |last1=Sanicola |first1=Laura |title=U.S. gasoline prices are finally falling. Why? |url=https://www.reuters.com/business/energy/us-gasoline-prices-are-finally-falling-why-2022-07-14/ |publisher=Reuters |date=July 14, 2022}}</ref> In July, the UK imposed a 25% [[Windfall tax|windfall profit tax]] on British [[North Sea oil]] producers, which expected to raise £5 billion to pay for a government scheme that reduced household energy costs.<ref>{{cite news |title=UK lawmakers approve windfall tax on oil and gas producers |url=https://www.reuters.com/world/uk/uk-lawmakers-approve-windfall-tax-oil-gas-producers-2022-07-11/ |publisher=Reuters |date=July 11, 2022}}</ref> In late October, U.S. President [[Joe Biden]] accused the oil and gas sector of "[[war profiteering]]" and threatened to seek a windfall profit tax if the industry did not increase production to curb gasoline prices.<ref>{{cite news |last1=Baker |first1=Peter |title=Biden Accuses Oil Companies of 'War Profiteering' and Threatens Windfall Tax |url=https://www.nytimes.com/2022/10/31/us/politics/biden-oil-windfall-tax.html |work=The New York TImes |date=October 31, 2022}}</ref>

==Transitory vs persistent debate==
{{Globalise|section|US|date=November 2022}}
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. Economists [[Larry Summers]] and [[Olivier Blanchard]] warned of persistent inflation, while [[Paul Krugman]] and U.S. Treasury Secretary [[Janet Yellen]] argued it would be transitory.<ref>{{cite news|url=https://www.nytimes.com/2021/12/16/opinion/inflation-economy-2021.html|title=The Year of Inflation Infamy|author=Paul Krugman|work=[[The New York Times]]|date=December 16, 2021 }}</ref> Inflation continued to accelerate during 2021 and into 2022. 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 a succession of four 75 basis point hikes in each of June, July, September and November. Some analysts considered these increases late and dramatic, arguing they might induce a recession.<ref>{{cite news |last1=Cox |first1=Jeff |title=Bernanke says the Fed's slow response to inflation 'was a mistake' |url=https://www.cnbc.com/2022/05/16/bernanke-says-the-feds-slow-response-to-inflation-was-a-mistake.html |publisher=CNBC |date=May 16, 2022}}</ref><ref>{{cite news |title=How the Fed's rate hikes slow the economy — and impact you |url=https://www.washingtonpost.com/business/interactive/2022/fed-rate-hikes-economy/ |newspaper=The Washington Post |date=November 2, 2022|author1=Rachel Siegel|author2=Emily Wright}}</ref> The combined moves put the fed funds rate at its highest level{{quantify|date=November 2022}} since the onset of the [[Great Recession]] in early 2008.<ref>{{cite news |last1=Timiraos |first1=Nick |title=Fed Approves Fourth 0.75-Point Rate Rise, Hints at Smaller Hikes |url=https://www.wsj.com/articles/fed-approves-fourth-0-75-point-rate-rise-hints-at-smaller-hikes-11667412242 |work=The Wall Street Journal |date=November 2, 2022}}</ref><ref>{{cite news |last1=Smialek |first1=Jeanna |title=The Fed raises rates by three-quarters of a percentage point. |url=https://www.nytimes.com/live/2022/07/27/business/fed-interest-rates#after-another-rate-increase-big-questions-remain-about-what-comes-next |work=The New York TImes |date=July 27, 2022}}</ref> Inflation in the [[Eurozone]] hit a record high of 8.1% in May, prompting the [[European Central Bank]] to announce that it would raise rates in July by 25 basis points, the first increase in eleven years, and again in September by 50 basis points. By November it had increased rates by a cumulative 200 basis points.<ref>{{cite news |last1=Amaro |first1=Silvia |title=European Central Bank surprises markets with larger-than-expected rate hike, its first in 11 years |url=https://www.cnbc.com/2022/07/21/european-central-bank-raises-rates-by-50-basis-points-its-first-hike-in-11-years.html |publisher=CNBC |date=July 21, 2022}}</ref><ref>{{cite news |title=ECB must keep raising rates even if recession risks rise, Lagarde says |url=https://www.reuters.com/markets/europe/ecb-must-keep-raising-rates-even-if-recession-risks-rise-lagarde-says-2022-11-01/ |publisher=Reuters |date=November 1, 2022}}</ref> After the Fed's third rate increase, Summers said "We are still headed for a pretty [[Hard landing (economics)|hard landing]]."<ref>Multiple sources:
* {{Cite web |last=Cox |first=Jeff |date=March 16, 2022 |title=Federal Reserve approves first interest rate hike in more than three years, sees six more ahead |url=https://www.cnbc.com/2022/03/16/federal-reserve-meeting.html |url-status=live |archive-url=https://web.archive.org/web/20220616022033/https://www.cnbc.com/2022/03/16/federal-reserve-meeting.html |archive-date=June 16, 2022 |website=CNBC}}
* {{Cite web|url=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|title=Fed raises rates by half a percentage point — the biggest hike in two decades — to fight inflation|first=Jeff|last=Cox|date=May 4, 2022|website=CNBC|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105125/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|url-status=live}}
* {{Cite web|url=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|title=Fed hikes its benchmark interest rate by 0.75 percentage point, the biggest increase since 1994|first=Jeff|last=Cox|date=June 15, 2022|website=CNBC|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105126/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|url-status=live}}
* {{Cite web|url=https://www.ft.com/content/62ef08f8-107e-4e80-b972-f624d7e1836e|title=Betting on transitory US inflation is still valid|work=Financial Times|author=[[Megan Greene]]|date=January 7, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105126/https://www.ft.com/content/62ef08f8-107e-4e80-b972-f624d7e1836e|url-status=live}}
* {{Cite web|url=https://www.barrons.com/articles/larry-summers-economy-fed-hard-landing-inflation-recession-51655402216|title='We Are Still Headed for a Pretty Hard Landing,' Ex-Treasury Secretary Larry Summers Says|first=Lisa|last=Beilfuss|work=Barron's|date=June 17, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105255/https://www.barrons.com/articles/larry-summers-economy-fed-hard-landing-inflation-recession-51655402216|url-status=live}}
* {{Cite web|url=https://www.politico.com/news/2022/06/17/clearly-behind-the-curve-ceos-sour-on-powell-over-rate-hikes-00040254|title=Inflation's main culprit? CEOs zero in on Powell's Fed|work=Politico|author=Ben White|date=June 17, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105126/https://www.politico.com/news/2022/06/17/clearly-behind-the-curve-ceos-sour-on-powell-over-rate-hikes-00040254|url-status=live}}
* {{cite news|title=Europe's central bank to hike rates in July, 1st in 11 years|url=https://apnews.com/article/russia-ukraine-covid-politics-health-10bdb0c93b5a45d3cd51c76091997c62|publisher=Associated Press|date=June 9, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619115425/https://apnews.com/article/russia-ukraine-covid-politics-health-10bdb0c93b5a45d3cd51c76091997c62|url-status=live}}
* {{cite news|last1=Collinson|first1=Stephen|title=Yellen's words on inflation won't end America's price hikes|url=https://edition.cnn.com/2022/06/01/politics/yellen-biden-inflation-2022-midterms-analysis/index.html|publisher=CNN|date=June 1, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619132425/https://edition.cnn.com/2022/06/01/politics/yellen-biden-inflation-2022-midterms-analysis/index.html|url-status=live}}</ref> By November 2022, the inflation rate in the United States had declined five months straight while job creation remained strong and third quarter real GDP growth was 3.2% on strong consumer spending, leading a growing number of investors to conclude a hard landing might be averted.<ref>{{cite news |last1=Wallace |first1=Alicia |title=Inflation cooled more than expected in November |url=https://www.cnn.com/2022/12/13/economy/cpi-inflation-report-november/index.html |publisher=CNN|date=December 13, 2022}}</ref><ref>{{cite news |title=U.S. Job Growth Remains Strong, Defying Fed's Rate Strategy |url=https://www.nytimes.com/2022/12/02/business/economy/jobs-report-november.html |work=The New York TImes |date=December 2, 2022|author=Lydia DePhillis}}</ref><ref>{{cite news |title=The US economy grew much faster than previously thought in the third quarter |url=https://www.cnn.com/2022/12/22/economy/gdp-third-quarter-final/index.html |publisher=CNN |date=December 22, 2022|author1=Chris Isidore|author2=Alicia Wallace}}</ref><ref>{{cite news |last1=Otani |first1=Akane |title=Investors Grow More Confident Fed Will Pull Off a Soft Landing |url=https://www.wsj.com/articles/investors-grow-more-confident-fed-will-pull-off-a-soft-landing-11670704543 |work=The Wall Street Journal |date=December 11, 2022|quote=A few months ago, Wall Street rebuffed the idea that the Federal Reserve would be able to pull off a soft landing. Now, a growing crowd is betting on exactly that happening. Mutual funds and hedge funds managing roughly $4.8 trillion in assets have been putting money into stocks that stand to benefit from inflation cooling, interest rates going down and the U.S. economy avoiding a recession, according to an analysis by Goldman Sachs Group Inc.}}</ref>

== Impact of the 2022 Russian invasion of Ukraine ==
{{Main|Economic impact of the Russian invasion of Ukraine}}

[[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 U.S. 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.<ref>{{Cite news |last=Mui |first=Christine |date=June 13, 2022 |title=Top economist Mark Zandi says forget Biden's stimulus—Putin's war in Ukraine is by far the biggest driver of inflation |work=Fortune |url=https://fortune.com/2022/06/13/mark-zandi-moodys-chief-economist-inflation-russia-invasion-ukraine/ |url-status=live |archive-url=https://web.archive.org/web/20220615003113/https://fortune.com/2022/06/13/mark-zandi-moodys-chief-economist-inflation-russia-invasion-ukraine/ |archive-date=June 15, 2022}}</ref>

Russian gas supply curbs, which began in 2021, aggravated [[2021–present global energy crisis|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.<ref>{{cite news |author1=Liboreiro, Jorge |author2=de Filippi, Alberto |title=Why Europe's energy prices are soaring and could get much worse |url=https://www.euronews.com/my-europe/2021/10/28/why-europe-s-energy-prices-are-soaring-and-could-get-much-worse |work=Euronews |date=2021-10-28}}</ref> On February 22, 2022, before the Russian invasion, the [[Cabinet of Germany|German Government]] froze the [[Nord Stream 2]] pipeline between [[Russia]] and [[Germany]],<ref>{{Cite news |last1=Marsh |first1=Sarah |last2=Chambers |first2=Madeline |date=February 22, 2022 |title=Germany freezes Nord Stream 2 gas project as Ukraine crisis deepens |language=en |work=Reuters |url=https://www.reuters.com/business/energy/germanys-scholz-halts-nord-stream-2-certification-2022-02-22/ |url-status=live |archive-url=https://web.archive.org/web/20220429201331/https://www.reuters.com/business/energy/germanys-scholz-halts-nord-stream-2-certification-2022-02-22/ |archive-date=April 29, 2022}}</ref> causing [[natural gas]] prices to rise significantly.<ref>{{Cite web |title=Natural Gas PRICE Today {{!}} Natural Gas Spot Price Chart {{!}} Live Price of Natural Gas per Ounce {{!}} Markets Insider |url=https://markets.businessinsider.com/commodities/natural-gas-price |url-status=live |archive-url=https://web.archive.org/web/20220502210727/https://markets.businessinsider.com/commodities/natural-gas-price |archive-date=May 2, 2022 |website=markets.businessinsider.com |language=en}}</ref>

On February 24, Russian military forces invaded [[Ukraine]]<ref>{{Cite news |date=February 22, 2022 |title=Ukraine crisis: Russia orders troops into rebel-held regions |language=en-GB |work=BBC News |url=https://www.bbc.com/news/world-europe-60468237 |url-status=live |archive-url=https://web.archive.org/web/20220224151156/https://www.bbc.com/news/world-europe-60468237 |archive-date=February 24, 2022}}</ref> to overthrow the democratically elected government, and replace it with a Russian [[Puppet state|puppet government]].<ref>{{Cite web |last=Kudlenko |first=Anastasiia |title=Ukraine: Putin's desire to install a puppet government draws from the Bolshevik playbook |url=http://theconversation.com/ukraine-putins-desire-to-install-a-puppet-government-draws-from-the-bolshevik-playbook-178060 |url-status=live |archive-url=https://web.archive.org/web/20220408074753/https://theconversation.com/ukraine-putins-desire-to-install-a-puppet-government-draws-from-the-bolshevik-playbook-178060 |archive-date=April 8, 2022 |website=The Conversation |date=February 28, 2022 |language=en}}</ref> 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, [[2022 food crises|causing shortages]], and result in dramatic rise in prices,<ref>{{Cite web |last=Welle (www.dw.com) |first=Deutsche |title=Ukraine war increases global food insecurity {{!}} DW {{!}} March 21, 2022 |url=https://www.dw.com/en/ukraine-war-increases-global-food-insecurity/a-61206423 |url-status=live |archive-url=https://web.archive.org/web/20220502210727/https://www.dw.com/en/ukraine-war-increases-global-food-insecurity/a-61206423 |archive-date=May 2, 2022 |website=DW.COM |language=en-GB}}</ref> that exacerbated to [[food]]stuffs and [[biodiesel]] prices.<ref>{{Cite news |date=March 5, 2022 |title=Food prices jump 20.7% yr/yr to hit record high in Feb, U.N. agency says |language=en |work=Reuters |url=https://www.reuters.com/world/food-prices-hit-record-high-february-un-agency-says-2022-03-04/ |url-status=live |archive-url=https://web.archive.org/web/20220601043305/https://www.reuters.com/world/food-prices-hit-record-high-february-un-agency-says-2022-03-04/ |archive-date=June 1, 2022}}</ref><ref>{{Cite web |date=February 19, 2015 |title=Biodiesel prices (SME & FAME) |url=https://www.neste.com/investors/market-data/biodiesel-prices-sme-fame |url-status=live |archive-url=https://web.archive.org/web/20220401175407/https://www.neste.com/investors/market-data/biodiesel-prices-sme-fame |archive-date=April 1, 2022 |website=Neste worldwide |language=en}}</ref> Additionally, the price of [[Brent Crude|Brent Crude Oil]] per barrel rose from $97.93 on February 25 to a high of $127.98 on March 8,<ref>{{Cite web |title=Crude Oil Price Today {{!}} Brent Oil Price Chart {{!}} Oil Price Per Barrel |url=https://markets.businessinsider.com/commodities/oil-price |url-status=live |archive-url=https://web.archive.org/web/20220502043632/https://markets.businessinsider.com/commodities/oil-price |archive-date=May 2, 2022 |website=markets.businessinsider.com |language=en}}</ref> this caused [[petrochemical]]s and other goods reliant on crude oil to rise in price as well.<ref>{{Cite web |last=Dolar |first=Veronika |title=Soaring crude prices make the cost of pretty much everything else go up too because we almost literally eat oil |url=http://theconversation.com/soaring-crude-prices-make-the-cost-of-pretty-much-everything-else-go-up-too-because-we-almost-literally-eat-oil-179809 |url-status=live |archive-url=https://web.archive.org/web/20220502210731/https://theconversation.com/soaring-crude-prices-make-the-cost-of-pretty-much-everything-else-go-up-too-because-we-almost-literally-eat-oil-179809 |archive-date=May 2, 2022 |website=The Conversation |date=March 28, 2022 |language=en}}</ref><ref>{{Cite web |title=Petrochemical prices expected to keep rising |url=https://globuc.com/news/petrochemical-prices-to-rise/ |url-status=live |archive-url=https://web.archive.org/web/20220716153002/https://globuc.com/news/petrochemical-prices-to-rise/ |archive-date=July 16, 2022 |website=Globuc |language=en}}</ref>

The effect of [[Sanctions involving Russia|sanctions]] on the Russian economy caused annual inflation in Russia to rise to 17.89%, its highest since 2002.<ref name="2022_apr_reuters">{{Cite news |date=April 13, 2022 |title=Inflation in Russia hits highest in more than 20 years |language=en |work=Reuters |url=https://www.reuters.com/world/europe/inflation-russia-hits-highest-more-than-20-years-2022-04-13/ |url-status=live |archive-url=https://web.archive.org/web/20220502210727/https://www.reuters.com/world/europe/inflation-russia-hits-highest-more-than-20-years-2022-04-13/ |archive-date=May 2, 2022}}</ref> 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.<ref name="2022_apr_reuters" />

==Regional impacts==
{{See also|List of countries by inflation rate|List of sovereign states by central bank interest rates}}
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]] and the [[United States]].<ref name="Pew">{{Cite web |last=DeSilver |first=Drew |date=November 24, 2021 |title=Inflation has risen around the world, but the U.S. has seen one of the biggest increases |url=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/ |url-status=live |archive-url=https://web.archive.org/web/20211229193928/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/ |archive-date=December 29, 2021 |publisher=Pew Research Center}}</ref><ref>{{Cite web |date=May 31, 2022 |title=Eurozone inflation hits record 8.1% amid rising energy costs |url=https://apnews.com/article/russia-ukraine-european-union-inflation-bd5e9345f5da5d44d78c612a6b9c0008 |url-status=live |archive-url=https://web.archive.org/web/20220619123025/https://apnews.com/article/russia-ukraine-european-union-inflation-bd5e9345f5da5d44d78c612a6b9c0008 |archive-date=June 19, 2022 |website=[[Associated Press]]}}</ref> 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.<ref>{{Cite news |last=Eddy |first=Melissa |date=July 1, 2022 |title=Eurozone inflation rises to 8.6 percent, the highest ever, driven by high energy prices |work=The New York Times |url=https://www.nytimes.com/2022/07/01/business/eurozone-inflation-june.html |url-status=live |archive-url=https://web.archive.org/web/20220701125637/https://www.nytimes.com/2022/07/01/business/eurozone-inflation-june.html?referringSource=articleShare |archive-date=July 1, 2022}}</ref> In response, at least 75 central banks around the world have aggressively increased [[interest rate]]s.<ref>{{cite web |url=https://www.nytimes.com/2022/07/17/business/economy/global-central-banks-inflation.html |title=Global Central Banks Ramp Up Inflation Fight |last1=Smialek |first1=Jeanna |last2=Nelson |first2=Eshe |date=July 17, 2022 |work=The New York Times |access-date=July 18, 2022 }}</ref> However, the [[World Bank]] warns that combating inflation with rate hikes has increased the risk of a global recession.<ref>{{cite news |author=<!--not stated--> |date=2022-09-15 |title=World Bank sees rising risk of global recession in 2023 |url=https://www.reuters.com/markets/rates-bonds/world-bank-sees-rising-risk-global-recession-2023-2022-09-15/ |work=Reuters |access-date=2022-09-16 |df=dmy-all}}</ref><ref>{{cite report |last1=Guénette |first1=Justin-Damien |last2=Kose |first2=M. Ayhan |last3=Sugawara |first3=Naotaka |date=2022-09-15 |title=Is a Global Recession Imminent? |url=https://openknowledge.worldbank.org/bitstream/handle/10986/38019/Global-Recession.pdf |publisher=World Bank |access-date=2022-09-16 |df=dmy-all}}</ref>

===North Africa and Middle East===
{{See also|Turkish economic crisis (2018–current)}}
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 [[International sanctions during the 2022 Russian invasion of Ukraine|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]].<ref>[https://northafricapost.com/60583-world-bank-tunisias-trade-deficit-continues-to-widen-amid-soaring-inflation.html "World Bank: Tunisia's trade deficit continues to widen amid soaring inflation"]. northafricapost.com. Retrieved 12 September 2022.</ref><ref>[https://www.reuters.com/article/morocco-inflation/moroccan-household-finances-hit-by-imported-inflation-planning-agency-idUSKBN2JS0ZO "Moroccan household finances hit by imported inflation – planning agency"] ''Reuters''.
Retrieved 12 September 2022.</ref><ref>[https://www.arabnews.com/node/2158786/amp "Egypt's inflation hits 4-year high amid surge in food prices"] ''arabnews''. Retrieved 12 September 2022.</ref>

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 [[Nestlé]]'s Middle East and North Africa (MENA) unit have noticed the stock-piling of non-perishable items, as a reaction to the surging inflation. [[Nestlé|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.<ref>[https://www.reuters.com/business/retail-consumer/nestle-adapts-hoarding-picks-up-asia-north-africa-2022-09-21/ "Nestle adapts as hoarding picks up in Asia, North Africa"] ''Reuters Business Unit''. Retrieved 20 September 2022.</ref>

In [[2018–2022 Turkish currency and debt crisis|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.<ref>{{Cite news |date=January 1, 2022 |title=Turkey hikes energy prices; Istanbul monthly inflation highest in decade |work=WTVB |url=https://wtvbam.com/2022/01/01/turkey-hikes-energy-prices-istanbul-monthly-inflation-highest-in-decade/ |url-status=live |archive-url=https://web.archive.org/web/20220101193412/https://wtvbam.com/2022/01/01/turkey-hikes-energy-prices-istanbul-monthly-inflation-highest-in-decade/ |archive-date=January 1, 2022}}</ref> By August 2022, Turkey's inflation rate was 80.21%.<ref>https://www.statista.com/statistics/895080/turkey-inflation-rate/ |archive-date=October 18, 2022</ref>

=== Sub-Saharan Africa ===
According to the IMF, median inflation approached 9% in August. Rising prices of food and "tradable goods like household products" have contributed most to this increase.<ref>[https://www.weforum.org/agenda/2022/10/inflation-sub-saharan-africa-economy-challenge/ "Why inflation is one of Africa's most pressing challenges - and how to tackle it"] ''World Economic Forum'' blog. Retrieved 1 November 2022.</ref>

=== North America ===
[[File:Housing prices inflation.webp|thumb|300px|right|Housing prices inflation from Q4 2020 to Q4 2021 in the United States<br> 
{{color box|#106f67}} 40% <br>
{{color box|#92cac2}} 20% <br>
{{color box|#f5f7ea}} 0% <br>
{{color box|#d7bd8a}} -20% <br>
{{color box|#885810}} -40%
]]

In the United States, the [[United States Consumer Price Index|Consumer Price Index]] rose 6.8% between November 2020 and November 2021, spurred by price increases for gasoline, food, and housing.<ref>{{Cite news |last=Aratani |first=Lauren |date=December 10, 2021 |title=US inflation rate rose to 6.8% in 2021, its highest since 1982 |work=The Guardian |url=https://www.theguardian.com/business/2021/dec/10/us-inflation-rate-rise-2021-highest-increase-since-1982 |url-status=live |archive-url=https://web.archive.org/web/20220103152533/https://www.theguardian.com/business/2021/dec/10/us-inflation-rate-rise-2021-highest-increase-since-1982 |archive-date=January 3, 2022}}</ref> Higher energy costs caused the inflation to rise further in 2022,<ref>{{Cite web |last=Tan |first=Su-Lin |date=July 14, 2022 |title=Yellen warns inflation in the U.S. is 'unacceptably high' |url=https://www.cnbc.com/2022/07/14/yellen-warns-inflation-in-the-us-is-unacceptably-high.html |url-status=live |archive-url=https://web.archive.org/web/20220715024523/https://www.cnbc.com/2022/07/14/yellen-warns-inflation-in-the-us-is-unacceptably-high.html |archive-date=July 15, 2022 |publisher=CNBC |quote=Almost half of the increase in prices in the latest inflation numbers came from high energy costs, Yellen added. }}</ref> reaching 9.1%, a high not seen since 1981.<ref>{{Cite web |last=Cox |first=Jeff |date=July 13, 2022 |title=Inflation rose 9.1% in June, even more than expected, as consumer pressures intensify |url=https://www.cnbc.com/2022/07/13/inflation-rose-9point1percent-in-june-even-more-than-expected-as-price-pressures-intensify.html |url-status=live |archive-url=https://web.archive.org/web/20220715000930/https://www.cnbc.com/2022/07/13/inflation-rose-9point1percent-in-june-even-more-than-expected-as-price-pressures-intensify.html |archive-date=July 15, 2022 |publisher=CNBC }}</ref> In July 2022, the [[Federal Reserve|Fed]] increased the interest rate for the third time in the year,<ref>{{Cite news |date=June 15, 2022 |title=US makes biggest interest rate rise in almost 30 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-61804877 |access-date=July 22, 2022}}</ref> yet inflation remained high outpacing the growth in wages<ref>{{Cite news |last=Harrison |first=David |date=May 6, 2022 |title=Pay Raises Are Historically High. Inflation Is Still Eclipsing Those Gains. |language=en-US |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/inflation-eclipses-aprils-historically-strong-wage-gains-11651854549 |access-date=July 22, 2022 |issn=0099-9660}}</ref> and spending.<ref>{{Cite news |last=Dougherty |first=Danny |date=July 17, 2022 |title=Inflation Has Outpaced Wage Growth. Now It's Cutting Into Spending. |language=en-US |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/inflation-has-outpaced-wage-growth-now-its-cutting-into-spending-11658050200 |access-date=July 22, 2022 |issn=0099-9660}}</ref> According to the [[Economic Policy Institute]] the [[Minimum wage in the United States|minimum wage]] was worth less than any time since 1956 due to inflation.<ref>{{Cite web |last=Konish |first=Lorie |date=July 15, 2022 |title=High inflation leads federal minimum wage to reach lowest value since 1956, report finds |url=https://www.cnbc.com/2022/07/15/inflation-leads-federal-minimum-wage-to-reach-lowest-value-since-1956.html |access-date=July 22, 2022 |website=CNBC |language=en}}</ref><ref>{{Cite web |title=The value of the federal minimum wage is at its lowest point in 66 years |url=https://www.epi.org/blog/the-value-of-the-federal-minimum-wage-is-at-its-lowest-point-in-66-years/ |access-date=July 22, 2022 |website=Economic Policy Institute |language=en-US}}</ref> In November 2022, [[LendingClub]] said 63% of Americans were living [[paycheck to paycheck]].<ref>{{cite news |last1=Dickler |first1=Jessica |title=Share of Americans living paycheck to paycheck rises to 63% — here's how to get your finances back on track |url=https://www.cnbc.com/2022/12/15/amid-high-inflation-63percent-of-americans-are-living-paycheck-to-paycheck.html |access-date=12 February 2023 |work=CNBC |date=December 15, 2022 |language=en}}</ref>

Nevertheless, the hikes were seen as faster and sooner than the response by the European Central Bank, so while the euro fell, the dollar remained relatively stronger, helping it to be the more valuable currency for the first time in 20 years.<ref name="BBC News">{{Cite news |date=July 13, 2022 |title=Euro falls below dollar for first time in 20 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62153251 |access-date=July 22, 2022}}</ref><ref name="bbc.com">{{Cite news |date=July 21, 2022 |title=Eurozone raises interest rates for first time in 11 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62240730 |access-date=July 22, 2022}}</ref> 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.<ref>{{Cite web |title=Federal Reserve issues FOMC statement |url=https://www.federalreserve.gov/newsevents/pressreleases/monetary20220727a.htm |access-date=August 3, 2022 |website=Board of Governors of the Federal Reserve System |language=en}}</ref><ref>{{Cite news |date=July 27, 2022 |title=US makes huge interest rate rise to tame soaring prices |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62310354 |access-date=August 3, 2022}}</ref><ref>{{Cite news |title=Fed to Inflict More Pain on Economy as It Readies Big Rate Hike |url=https://www.bloomberg.com/news/articles/2022-07-24/fed-to-inflict-more-pain-on-economy-as-it-readies-big-rate-hike |access-date=August 3, 2022 |newspaper=Bloomberg|date=July 24, 2022 }}</ref> On July 28, data from the [[Bureau of Economic Analysis|BEA]] showed that the economy shrunk for the second quarter in a row, which is commonly used to define a recession.<ref>{{Cite web |title=Gross Domestic Product, Second Quarter 2022 (Advance Estimate) {{!}} U.S. Bureau of Economic Analysis (BEA) |url=https://www.bea.gov/news/2022/gross-domestic-product-second-quarter-2022-advance-estimate |access-date=August 3, 2022 |website=www.bea.gov}}</ref><ref>{{Cite news |date=July 28, 2022 |title=US economy shrinks again sparking recession fears |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62310355 |access-date=August 3, 2022}}</ref><ref>{{Cite news |date=May 5, 2008 |title=The risk of redefining recession |url=https://money.cnn.com/2008/05/05/news/economy/recession/ |access-date=August 3, 2022}}</ref> [[Bureau of Labor Statistics|BLS]] data showed that inflation eased on July to 8.5%<ref>{{Cite news |date=August 10, 2022 |title=US inflation eases in July as petrol prices drop |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62482143 |access-date=August 14, 2022}}</ref><ref>{{Cite news |date=August 10, 2022 |title=US Inflation Runs Cooler Than Forecast, Easing Pressure on Fed |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-08-10/us-inflation-decelerates-more-than-forecast-on-gas-price-drop |access-date=August 14, 2022}}</ref> from the 40-year peak reached in June at 8.9%.<ref>{{Cite news |date=July 13, 2022 |title=US prices rising at fastest rate for 40 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62148662 |access-date=August 14, 2022}}</ref> Annual inflation increased to 8.3% in August 2022, in part due to rising grocery prices.<ref>{{Cite web |last=Boehm |first=Eric |date=September 13, 2022 |title=Rising Grocery Prices Pushed Annual Inflation to 8.3 Percent in August|url=https://reason.com/2022/09/13/rising-grocery-prices-pushed-annual-inflation-to-8-3-percent-in-august/}}</ref> In September, the Fed increased the interest for a fifth time in the year reaching a 14-year high.<ref>{{Cite news |date=2022-09-21 |title=Fed rate hike: US interest rates hit 14-year high in inflation battle |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62973376 |access-date=2022-09-26}}</ref> In November 2022, the year-over-year inflation rate was 7.1%, the lowest it has been since December 2021 but still much higher than average.<ref>{{Cite news |date=December 13, 2022 |title=Inflation Cools to 7.1 Percent, but Still Has a Long Way To Fall |url=https://reason.com/2022/12/13/inflation-cools-to-7-1-percent-but-still-has-a-long-way-to-fall/}}</ref>

Inflation is believed to have played a major role in a decline in the [[2021 opinion polling on the Joe Biden administration|approval rating of President Joe Biden]], who took office in January 2021, being net negative starting in October of that year.<ref>{{Cite news |last=Enten |first=Harry |date=December 21, 2021 |title=Biden's economic ratings are worse than Carter's |work=CNN |url=https://www.cnn.com/2021/12/21/politics/joe-biden-jimmy-carter-economic-ratings/index.html |url-status=live |archive-url=https://web.archive.org/web/20211225065557/https://www.cnn.com/2021/12/21/politics/joe-biden-jimmy-carter-economic-ratings/index.html |archive-date=December 25, 2021}}</ref> Many [[Republican Party (United States)|Republicans]] have blamed stimulus spending by Biden and fellow [[Democratic Party (United States)|Democrats]] for fueling the surge; economists state that the government's COVID stimulus during 2020 under Trump, as well as the Federal reserve's actions, and more stimulus under Biden, started the 2021 inflation spike.{{ r | NYT_2023-03-23 }}  In March 2023, Federal Reserve chairman [[Jerome Powell]] said that currently the primary drivers of inflation are supply chain problems, consumers' change to purchases of goods rather than services, and the tight labor market.<ref name=NYT_2023-03-23>{{cite news |last1=Tankersley |first1=Jim |title=Republicans Say Spending Is Fueling Inflation. The Fed Chair Disagrees. |url=https://www.nytimes.com/2023/03/23/us/politics/republicans-inflation-federal-reserve-powell.html |work=The New York Times |date=March 23, 2023 | quote=“You have to look at the fiscal impulse from spending,” Mr. Powell said on Wednesday, referring to a measure of how much tax and spending policies are adding or subtracting to economic growth. “Fiscal impulse is actually not what’s driving inflation right now. It was at the beginning perhaps, but that’s not the story right now.” Instead, Mr. Powell — along with Mr. Biden and his advisers — says rapid price growth is primarily being driven by factors like snarled supply chains, an oil shock following Russia’s invasion of Ukraine and a shift among American consumers from spending money on services like travel and dining out to goods like furniture. Mr. Powell has also said the low unemployment rate was playing a role: “Some part of the high inflation that we’re experiencing is very likely related to an extremely tight labor market,” he told a House committee earlier this month. ... Economists generally agree that those stimulus efforts — carried out by the Fed, by Mr. Biden and in trillions of dollars of pandemic spending signed by Mr. Trump in 2020 — helped push the inflation rate to its highest level in 40 years last year. But researchers disagree on how large that effect was, and over how to divide the blame between federal government stimulus and Fed stimulus.}}</ref><ref>{{Cite news |last=Guida |first=Victoria |date=December 9, 2021 |title=Another eye-popping inflation reading is ahead. Next year could look very different. |work=Politico |url=https://www.politico.com/news/2021/12/09/biden-inflation-next-year-523984 |url-status=live |archive-url=https://web.archive.org/web/20211226205425/https://www.politico.com/news/2021/12/09/biden-inflation-next-year-523984 |archive-date=December 26, 2021}}</ref>

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 U.S. dollar, which both increased monetary pressures on nations that mostly rely on energy imports. In effect, the strength of the U.S. dollar and [[International sanctions during the 2022 Russian invasion of Ukraine|sanctions on energy commodities]] have contributed to global inflation in 2022.<ref>[https://www.kansascityfed.org/research/economic-bulletin/price-pressures-for-us-exporters-and-a-strong-dollar-have-increased-inflation-in-foreign-countries/ "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.</ref>

Analysis conducted by ''[[Politico]]'' in May 2023 found that in the United States, wage growth for the bottom 10th percentile of the wage scale beat inflation by a strong 5.7% from 2020 through 2022. For the middle 50th percentile, real wages were down by 1%, while they were down 5% for the top 90th percentile.<ref>{{cite news |last1=Guida |first1=Victoria |title=Historic gains: Low-income workers scored in the Covid economy |url=https://www.politico.com/news/2023/05/29/low-income-wages-employment-00097135 |work=Politico |date=May 29, 2023}}</ref>

On July 26, the FED raised the interest rate to 5.5% the highest since 2001<ref>{{Cite news |date=2023-07-26 |title=Fed raises interest rates to highest in 22 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-66316710 |access-date=2023-08-04}}</ref> and in October the 30-year fixed mortgage rate rose to 8% a 23 year high<ref>{{Cite web |last=Olick |first=Diana |date=2023-10-18 |title=The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar |url=https://www.cnbc.com/2023/10/18/30-year-fixed-mortgage-rate-just-hit-8percent-for-the-first-time-since-2000.html |access-date=2023-11-08 |website=CNBC |language=en}}</ref> while the 10-year Treasury yield rose to 5% a 16 year high.<ref>{{Cite web |last=Li |first=Yun |date=2023-10-19 |title=10-year Treasury yield rises to 5%, the highest level for the key rate in 16 years |url=https://www.cnbc.com/2023/10/19/us-treasurys-ahead-of-fed-chair-powell-speech.html |access-date=2023-11-08 |website=CNBC |language=en}}</ref><ref>{{Cite web |last=Timiraos |first=Nick |title=Higher Bond Yields Could End the Fed's Historic Rate Rises |url=https://www.wsj.com/economy/central-banking/higher-bond-yields-could-end-the-feds-historic-rate-rises-f54b65d3 |access-date=2023-11-08 |website=WSJ |language=en-US}}</ref>

Canada also saw multi-decade highs in inflation, hitting 5.1% in February 2022<ref>{{Cite web |last=Evans |first=Pete |date=February 16, 2022 |title=Canada's inflation rate rises to 5.1% — highest since 1991 |url=https://www.cbc.ca/news/business/canada-inflation-january-1.6353464 |url-status=live |archive-url=https://web.archive.org/web/20220216135214/https://www.cbc.ca/news/business/canada-inflation-january-1.6353464 |archive-date=February 16, 2022 |publisher=Canadian Broadcasting Corporation}}</ref> and further increasing to 6.7% two months later.<ref>{{Cite web |last=Evans |first=Pete |date=April 20, 2022 |title=Canada's inflation rate jumps to new 31-year high of 6.7% |url=https://www.cbc.ca/news/business/canada-inflation-1.6424388 |url-status=live |archive-url=https://web.archive.org/web/20220514064224/https://www.cbc.ca/news/business/canada-inflation-1.6424388 |archive-date=May 14, 2022 |publisher=Canadian Broadcasting Corporation}}</ref> In April, inflation rose again to 6.8%,<ref>{{Cite web |date=May 18, 2022 |title=Consumer Price Index, April 2022 |url=https://www150.statcan.gc.ca/n1/daily-quotidien/220518/dq220518a-eng.htm |url-status=live |archive-url=https://web.archive.org/web/20220606193351/https://www150.statcan.gc.ca/n1/daily-quotidien/220518/dq220518a-eng.htm |archive-date=June 6, 2022 |website=[[Statistics Canada]] |publisher=[[Government of Canada]]}}</ref><ref>{{Cite news |last=Argitis |first=Theophilos |date=May 18, 2022 |title=Canadian Inflation Hits New Three-Decade High of 6.8% on Housing |work=[[Bloomberg News]] |publisher=[[Bloomberg L.P.]] |url=https://www.bloomberg.com/news/articles/2022-05-18/canada-s-inflation-rises-to-new-three-decade-highs-on-housing |archive-url=https://archive.today/20220518133337/https://www.bloomberg.com/news/articles/2022-05-18/canada-s-inflation-rises-to-new-three-decade-highs-on-housing |archive-date=May 18, 2022}}</ref> before jumping to 7.7% in May, the highest ever since 1983.<ref>{{Cite web |date=June 22, 2022 |title=Consumer Price Index, May 2022 |url=https://www150.statcan.gc.ca/n1/daily-quotidien/220622/dq220622a-eng.htm |url-status=live |archive-url=https://web.archive.org/web/20220624010912/https://www150.statcan.gc.ca/n1/daily-quotidien/220622/dq220622a-eng.htm |archive-date=June 24, 2022 |website=[[Statistics Canada]] |publisher=[[Government of Canada]]}}</ref><ref>{{Cite news |last=Evans |first=Pete |date=June 22, 2022 |title=Canada's inflation rate now at 7.7% — its highest point since 1983 |work=[[CBC News]] |publisher=[[Canadian Broadcasting Corporation]] |url=https://www.cbc.ca/news/business/inflation-rate-canada-1.6497189 |url-status=live |archive-url=https://web.archive.org/web/20220622124803/https://www.cbc.ca/news/business/inflation-rate-canada-1.6497189 |archive-date=June 22, 2022}}</ref>

In July 2022, Mexico's [[INEGI]] reported a year-on-year increase in consumer prices of 8.15%, against a [[Bank of Mexico|Central Bank]] target of 2&ndash;4%.<ref>{{cite news |last=De Haldevang |first=Max |date=August 11, 2022 |title=Mexico Raises Key Interest Rate to Highest Ever as Inflation Accelerates |publisher=Bloomberg |url=https://www.bloomberg.com/news/articles/2022-08-11/banxico-raises-key-rate-to-highest-ever-as-inflation-accelerates}}</ref>

After peaking at 9.1% in June 2022, the United States inflation rate declined steadily into 2023, representing overall [[disinflation]]. Analysis conducted by [[NerdWallet]] on October 2023 data found that prices for 92 of the 338 goods and services measured in CPI had declined from one year earlier, representing [[deflation]] for those items.<ref>{{cite news |last1=Helhoski |first1=Anna |title=What prices are actually deflating? |url=https://www.newsnationnow.com/business/your-money/what-prices-are-actually-deflating/ |publisher=[[NerdWallet]] |date=November 15, 2023|work=[[NewsNation]]}}</ref> The [[Farm Bureau]] annual survey found the average cost of a Thanksgiving dinner would be down 4.5% from 2022.<ref>{{cite news |last1=Schneider |first1=Harold |title=More peas please? Thanksgiving meal costs Americans less this year |url=https://www.reuters.com/markets/us/more-peas-please-thanksgiving-meal-costs-americans-less-this-year-2023-11-15/ |publisher=Reuters |date=November 15, 2023}}</ref>

=== South America ===
{{See also|La Década Perdida|Argentine monetary crisis}}
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.<ref>{{Cite news |last=Rosati |first=Andrew |date=December 10, 2021 |title=Brazil's Inflation Likely Peaked After Hitting 18-Year High |work=Bloomberg |url=https://www.bloomberg.com/news/articles/2021-12-10/brazil-s-consumer-prices-rise-less-than-forecast-in-november |url-status=live |archive-url=https://web.archive.org/web/20220101184610/https://www.bloomberg.com/news/articles/2021-12-10/brazil-s-consumer-prices-rise-less-than-forecast-in-november |archive-date=January 1, 2022}}</ref>

According to Austing Rating data, Brazil ended 2022 with the sixth lowest G20 inflation rate. Inflation recorded in Brazil in 2022 was below the United States for the first time in 15 years, in addition to being lower than that of the United Kingdom and the 6th lowest in the G20 (group of the 19 largest and most important economies in the world and the European Union).<ref>{{Cite web |last=Shoes |first=Eloisa |date=2023-01-19 |title=Inflação do Brasil está entre as menores do Mundo em 2022 |url=https://investidoresbrasil.com.br/inflacao-do-brasil-esta-entre-as-menores-do-mundo-em-2022/ |access-date=2023-02-16 |website=Investidores Brasil - Juntos Podemos Mais |language=pt-BR}}</ref>

In Argentina, a country with a chronic [[Economy of Argentina#Inflation|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.<ref>{{Cite news |date=August 12, 2022 |title=Argentina rate hiked to 69.5% as inflation hits 20-year high |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62514970 |access-date=August 19, 2022}}</ref> Inflation hit past 100% in February 2023 for the first time since 1991.<ref>{{Cite news |date=2023-03-15 |title=Argentina inflation soars past 100% mark |language=en-GB |work=BBC News |url=https://www.bbc.com/news/world-latin-america-64960385 |access-date=2023-03-15}}</ref><ref>{{Cite news |last1=Bianco |first1=Miguel Lo |last2=Martini |first2=Claudia |date=2023-03-14 |title=Argentina inflation tops 100% for first time since 1991 |language=en |work=Reuters |url=https://www.reuters.com/world/americas/argentines-struggle-shadow-100-inflation-2023-03-14/ |access-date=2023-03-15}}</ref>

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-19 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.<ref>{{Cite web |title=Inflación anual de Chile es la más alta en 30 años |url=https://www.cnnchile.com/economia/inflacion-anual-chile-30-anos_20220909/ |access-date=2022-09-26 |website=CNN Chile |language=es}}</ref><ref>{{Cite web |date=2022-09-09 |title=La mayor en 30 años: Expertos analizan compleja persistencia inflacionaria y las acciones del Banco Central para controlarla |url=https://www.emol.com/noticias/Economia/2022/09/09/1072368/economistas-politica-monetaria-inflacion.html |access-date=2022-09-26 |website=Emol |language=es}}</ref>

=== Europe ===
{{See also|2021–present United Kingdom cost-of-living crisis}}
In the Netherlands, the average 2021 inflation rate was the highest since 2003.<ref name=":0">{{Cite web |date=January 11, 2022 |title=Torenhoge inflatie in december, cijfer over heel 2021 naar 2,7 procent |url=https://nos.nl/artikel/2412657-torenhoge-inflatie-in-december-cijfer-over-heel-2021-naar-2-7-procent |url-status=live |archive-url=https://web.archive.org/web/20220111061119/http://nos.nl/artikel/2412657-torenhoge-inflatie-in-december-cijfer-over-heel-2021-naar-2-7-procent |archive-date=January 11, 2022 |publisher=[[Nederlandse Omroep Stichting|NOS]] |language=nl}}</ref> With energy prices having increased by 75%, December saw the highest inflation rate in decades.<ref name=":0" /> In 2023, Netherlands fell into recession from April to June.<ref>{{Cite web |title=Netherlands dips into recession after strong COVID rebound – DW – 08/16/2023 |url=https://www.dw.com/en/netherlands-dips-into-recession-after-strong-covid-rebound/a-66551394 |access-date=2023-08-30 |website=dw.com |language=en}}</ref>

In the UK, inflation reached a 40-year high of 10.1% in July 2022, driven by food prices, and further increase is anticipated in October when higher energy bills are expected to hit.<ref>{{Cite news |date=August 17, 2022 |title=UK inflation: Food costs push price rises to new 40-year high |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62562025 |access-date=August 19, 2022}}</ref> In September, the Bank of England warned the UK may already be in recession<ref>{{Cite news |date=2022-09-22 |title=UK may already be in recession - Bank of England |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62991376 |access-date=2022-09-27}}</ref> and in December, the interest rate was raised by the ninth time in the year to 3.5%, the highest level for 14 years.<ref>{{Cite news |date=2022-12-15 |title=UK interest rates raised to highest level for 14 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-63977963 |access-date=2023-01-05}}</ref>

UK food and drink prices rose by 19.2% in the year to March 2023, a 45-year high.<ref>{{Cite news |date=2023-04-19 |title=Inflation falls but food prices climb to 45 year high |language=en-GB |work=BBC News |url=https://www.bbc.com/news/uk-northern-ireland-65317256 |access-date=2023-04-25}}</ref><ref>{{Cite web |title=Consumer price inflation, UK - Office for National Statistics |url=https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/march2023 |access-date=2023-04-25 |website=www.ons.gov.uk}}</ref> On 3 August the BoE raised the interest rate to 5.25%, the highest since 2008.<ref>{{Cite news |date=2023-08-02 |title=Interest rates: No cut until 'solid evidence' price rises slowing - Bank boss |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-66384289 |access-date=2023-08-04}}</ref>

Germany's inflation rate reached 11.7% in October, the highest level since 1951.<ref name=":1">{{cite news |last1=Hannon |first1=Paul |date=October 31, 2022 |title=Eurozone Inflation Rate Rises to 10.7% as Recession Looms |work=The Wall Street Journal |url=https://www.wsj.com/articles/eurozone-inflation-rate-rises-to-10-7-as-recession-looms-11667210401}}</ref> In 2023, Germany fell into recession from January to March due to persistent inflation.<ref>{{Cite news |date=2023-05-25 |title=Germany falls into recession as inflation hits economy |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-65707206 |access-date=2023-05-27}}</ref>

In [[France]], inflation reached 5.8% in May, the highest in more than three decades.<ref name=":8">{{cite web|title=Projections macroéconomiques – Juin 2022|url=https://publications.banque-france.fr/projections-macroeconomiques-juin-2022|website=Banque de France|language=fr|date=2022-06-21|access-date=2022-10-25}}</ref>

An estimated 70,000 people protested against the Czech government as a result of rising energy prices.<ref>{{cite web |author=<!--Not stated--> |date=2022-09-04 |title=Tens of thousands protest in Prague against Czech government, EU and NATO |url=https://www.reuters.com/world/europe/tens-thousands-protest-prague-against-czech-government-eu-nato-2022-09-03/ |access-date=2022-09-30 |website=Reuters}}</ref><ref>[https://english.news.cn/europe/20220906/6dd60e11945b412b81ea9d6f95c46382/c.html "Outcry grows as European billpayers struggle amid historic energy crisis"]
english.news.cn. Retrieved 13 September 2022.</ref>

In June 2022, the [[European Central Bank]] (ECB) decided to raise interest rates for the first time in eleven years due to the elevated inflation pressure.<ref>{{Cite journal |date=June 9, 2022 |title=Monetary policy decisions |url=https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220609~122666c272.en.html |url-status=live |archive-url=https://web.archive.org/web/20220612152142/https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220609~122666c272.en.html |archive-date=June 12, 2022 |website=European Central |language=en|last1=Bank |first1=European Central }}</ref><ref>{{Cite news |date=June 9, 2022 |title=Eurozone interest rates set to rise for first time in 11 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-61749090 |url-status=live |archive-url=https://web.archive.org/web/20220611084618/https://www.bbc.com/news/business-61749090 |archive-date=June 11, 2022}}</ref> In July, the euro fell below the U.S. dollar for the 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.<ref name="BBC News" /><ref name="bbc.com" /> Eurozone inflation hit 9.1% and 10% in August and September, respectively,<ref>{{Cite web |last=Ward-Glenton |first=Hannah |title=Euro zone inflation hits another record of 9.1% as food and energy prices soar |url=https://www.cnbc.com/2022/08/31/euro-zone-inflation-hits-another-record-of-9point1percent-as-food-and-energy-prices-soar.html |access-date=September 2, 2022 |website=CNBC |date=August 31, 2022 |language=en}}</ref><ref>{{cite web |url=https://www.dw.com/en/eurozone-inflation-hits-record-10-highest-in-the-history-of-the-euro/a-63293956 |title=Eurozone inflation hits record 10%, highest in the history of the euro |author=<!--Not stated--> |date=2022-09-30 |website=DW |access-date=2022-09-30}}</ref> prompting the ECB to raise interest rates for a second time in the year to 1.25% in early September.<ref>{{Cite news |date=2022-09-08 |title=Eurozone interest rates in record rise to fight inflation |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62837336 |access-date=2022-09-26}}</ref> In October, the inflation hit 10.7%, the highest since records began in 1997.<ref>{{Cite web |last=Amaro |first=Silvia |title=Euro zone inflation hits record high of 10.7% as growth slows sharply |url=https://www.cnbc.com/2022/10/31/euro-zone-inflation-hits-10point7percent-in-october-.html |access-date=2022-11-04 |website=CNBC |date=October 31, 2022 |language=en}}</ref><ref name=":1" />

In 2023, the Eurozone fell into recession from January to March<ref>{{Cite news |date=2023-06-08 |title=Eurozone in recession as rising prices hit spending |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-65844370 |access-date=2023-06-10}}</ref> and also in March, the Eurozone [[core inflation]] hit a record 5.7%, the highest level since records began in 2001.<ref>{{Cite news |last=Hannon |first=Paul |date=2023-03-31 |title=Eurozone Core Inflation Hits Record High |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/eurozone-core-inflation-hits-record-high-6f2032b9 |access-date=2023-04-01 |issn=0099-9660}}</ref> On 14 September, the ECB raised the interest rate for the tenth consecutive time to 4%, the highest since the euro was launched in 1999.<ref>{{Cite news |last1=Canepa |first1=Francesco |last2=Koranyi |first2=Balazs |date=2023-09-14 |title=ECB raises rates to record high, signals end to hikes |language=en |work=Reuters |url=https://www.reuters.com/markets/europe/ecb-considers-lifting-rates-record-high-even-economy-slows-2023-09-13/ |access-date=2023-09-24}}</ref><ref>{{Cite news |date=2023-09-14 |title=Eurozone interest rates raised to all-time high |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-66805855 |access-date=2023-09-24}}</ref>

=== Asia ===
In April 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 [[Bongbong Marcos]] claimed that the record inflation rate was "not that high".<ref>{{Cite web |last=Cuyco |first=Jan |date=July 6, 2022 |title=That high: What you need to know about inflation in the Philippines |url=https://interaksyon.philstar.com/trends-spotlights/2022/07/06/221496/inflation-philippines-explainer/ |url-status=live |archive-url=https://web.archive.org/web/20220713193921/https://interaksyon.philstar.com/trends-spotlights/2022/07/06/221496/inflation-philippines-explainer/ |archive-date=July 13, 2022 |website=Interaksyon |language=en-US}}</ref> On January 5, 2023, the Philippines rapidly increased to a record-breaking 8.1% inflation from December 2022.<ref>{{Cite web |date=January 5, 2023 |title=Summary Inflation Report Consumer Price Index (2018=100): December 2022 |url=https://psa.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-index-2018100-december-2022 |website=Philippine Statistics Authority |language=en}}</ref><ref>{{Cite news |first=Ronnel W. |last=Domingo |date=January 5, 2023 |title=Philippine inflation rose further to 8.1% in December |url=https://business.inquirer.net/380969/philippine-inflation-rose-again-at-8-1-in-december |newspaper=Philippine Daily Inquirer |language=en}}</ref>

In October 2022, the [[Japanese yen]] touched a 32-year low against the U.S. dollar, mainly because of the strength of the latter.<ref>{{Cite news |date=2022-10-14 |title=Japanese yen touches 32-year low against US dollar |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-63252034 |access-date=2022-11-04}}</ref><ref>{{Cite web |title=Yen hits fresh 32-year low of 151 against U.S. dollar |url=https://asia.nikkei.com/Business/Markets/Currencies/Yen-hits-fresh-32-year-low-of-151-against-U.S.-dollar |access-date=2022-11-04 |website=Nikkei Asia |language=en-GB}}</ref> In November, the Japanese core inflation rate reached a 41-year high of 3.7%.<ref>{{cite news |title=Cost of living: Japan's inflation hits a 41-year high |url=https://www.bbc.com/news/business-64072866 |publisher=BBC |date=December 23, 2022|author1=Monica Miller|author2=Mariko Oi}}</ref>

=== Oceania ===
Inflation in [[New Zealand]] exceeded forecasts in July 2022, reaching 7.3%, which is the highest since 1990.<ref>{{cite web |url=https://www.bloomberg.com/news/articles/2022-07-17/new-zealand-inflation-accelerates-more-than-expected-to-7-3 |title=New Zealand Inflation Outpaces Forecasts at Fresh 32-Year High |last=Brockett |first=Matthew |date=July 17, 2022 |publisher=Bloomberg |access-date=July 18, 2022 }}</ref> Economists at [[Australia and New Zealand Banking Group|ANZ]] reportedly said they expected faster interest rate increases to counteract inflationary pressures.<ref>{{cite web |url=https://www.abc.net.au/news/2022-07-18/treasurer-jim-chalmers-warns-on-rates-budget-nz-inflation-surges/101247330 |title=Federal Treasurer Jim Chalmers warns on budget outlook, New Zealand inflation surge hints at even bigger interest rate rises |last=Janda |first=Michael |date=July 17, 2022 |publisher=[[ABC News (Australia)|ABC News]] |access-date=July 18, 2022 }}</ref>

In [[Fiji]], inflation rose to 4.7% in April 2022 compared to –2.4% in 2021.<ref>{{Cite web |last=Fijivillage |title=Annual headline inflation rises to 4.7% in April |url=https://www.fijivillage.com/news/Annual-headline-inflation-rises-to-47-in-April-54xrf8/ |url-status=live |archive-url=https://web.archive.org/web/20220526092408/https://www.fijivillage.com/news/Annual-headline-inflation-rises-to-47-in-April-54xrf8/ |archive-date=May 26, 2022 |website=www.fijivillage.com |language=en}}</ref> Food prices rose by 6.9% in April 2022, fuel increased by 25.2%, [[kerosene]] by 28.5% and gas by 27.7%.<ref>{{Cite web |last=Fijivillage |title=Food prices rose by 6.9% in April |url=https://www.fijivillage.com/news/Food-prices-rose-by-69-in-April-4x58fr/ |url-status=live |archive-url=https://web.archive.org/web/20220611092036/https://www.fijivillage.com/news/Food-prices-rose-by-69-in-April-4x58fr/ |archive-date=June 11, 2022 |website=www.fijivillage.com |language=en}}</ref>

In November 2023 Australia lifted the interest rate to 4.35% a 12-year high<ref>{{Cite news |last=Cole |first=Wayne |date=2023-11-07 |title=Australia's central bank raises rates to 12-year high, tempers hawkish stance |language=en |work=Reuters |url=https://www.reuters.com/markets/rates-bonds/australias-central-bank-raises-rates-12-year-high-tempers-hawkish-stance-2023-11-07/ |access-date=2023-11-08}}</ref>

==See also==
{{div col|colwidth=20em}}
* [[COVID-19 recession]]
* [[Economic impact of the COVID-19 pandemic]]
* [[Economic impact of the Russian invasion of Ukraine]]
* [[2021 United Kingdom natural gas supplier crisis]]
* [[2022 stock market decline]]
* [[2020s commodities boom]]
* [[2023 banking crisis]]
* [[Inflation Reduction Act]]
{{div col end}}

==References==
{{reflist}}

==External links==
* {{Cite web |title=Real interest rates |url=https://data.worldbank.org/indicator/FR.INR.RINR |website=World Bank Open Data}}
* {{Cite web |date=2023-05-04 |title=Real interest rates|url=https://www.visualcapitalist.com/visualized-real-interest-rates-by-country/ |website=Visual Capitalist}}
* [[Financial Times|FT's]] [https://www.ft.com/content/088d3368-bb8b-4ff3-9df7-a7680d4d81b2 Global inflation tracker]

{{Energy in Russia}}
{{Financial crises}}
{{COVID-19 pandemic}}
{{2022 Russian invasion of Ukraine|Impact}}
{{Federal Reserve System}}

{{DEFAULTSORT:2021-2022 inflation surge}}
[[Category:2021 in economics]]
[[Category:2022 in economics]]
[[Category:2023 in economics]]
[[Category:Economic impact of the COVID-19 pandemic]]
[[Category:Economic history of the United States]]
[[Category:Inflation]]
[[Category:Impacts of the Russian invasion of Ukraine|Economic]]
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