Around the World, Inflation Worsens

Headline Roundup June 23rd, 2022

Inflation is frustrating consumers in the U.S., but also in many other countries around the world.

Many nations, from the U.S. to Sudan to the U.K., are experiencing their highest inflation rates in decades. Prices in the U.K. rose 9.1% in the 12 months ending in May, up from 9% in April and the highest annual rate since 1982. In Africa, Sudan (245.1%), Zimbabwe (86.7%) and Ethiopia (34.5%) have some of the highest current inflation rates anywhere in the world. In Canada, the annual inflation rate rose to 7.7% in May, topping April’s 6.8% for the highest rate since 1983. Venezuela (1198.0%), Lebanon (201.0%) and Syria (139.0%) are among several countries worldwide with current inflation rates above 100%. Citigroup economists released a report on global inflation Wednesday, estimating that "the aggregate probability of recession is now approaching 50 percent."

Global inflation has been more of a focus for left- and center-rated news sources; right-rated outlets focus much more on inflation in the U.S. than in other countries. Reports across the spectrum, particularly on the right, highlight predictions of a global recession and the potential consequences, especially pertaining to food prices and access.

From the Center
302

Prices are continuing to rise at their fastest rate for 40 years with food costs, particularly for bread, cereal and meat, climbing.

UK inflation, the rate at which prices rise, edged up to 9.1% in the 12 months to May, from 9% in April, the Office for National Statistics (ONS) said.

Fuel and energy prices are the biggest drivers of inflation, but the ONS said food costs had pushed it up further.

Workers and unions are pushing for pay rises to cope with higher prices.

But the government has warned against...

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From the Right
302

Citigroup economists have forecast the chance of a global recession nearing 50 percent as central banks hike interest rates and consumer demand for goods drops off.

“The experience of history indicates that disinflation often carries meaningful costs for growth and we see the aggregate probability of recession as now approaching 50 percent,” economists led by Nathan Sheets said in a report on Wednesday.

“Central banks may yet engineer the soft—or ‘softish’—landings embodied in their forecasts (and in ours), but this will require supply shocks to ebb and demand to remain resilient.”

According to the report, Citigroup...

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From the Left
302

As of 2022, rising inflation has become a shared trend worldwide. The overall inflation rate in Sub-Saharan Africa is expected to grow to 12.2 per cent, and this is because many countries on the continent lack a sufficient central banking system, which in turn results in the manipulation of currency to achieve short-term economic goals. Furthermore, the global supply disruptions caused by the coronavirus (COVID-19) pandemic and Russia’s invasion of Ukraine are also some of the major drivers responsible for inflation. In fact, prices are set to rise even further,...

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