Rising fuel and food prices have become a problem not only for the world’s leading economies – the growth rates of consumer prices in developing economies are also updating multi-year highs.
In Chile, South America’s fifth-largest economy, annual inflation accelerated to 11.5% in May from 10.5% a month earlier, becoming a record since July 1994, according to official data released on Wednesday.
Consumer prices in Ghana, one of the ten largest economies in Africa, jumped by 27.6% year-on-year in May after rising by 23.6% in April, the fastest pace since January 2004. Inflation in the country has been accelerating for 12 months in a row and has exceeded the central bank’s target range of 6-10% for 9 months.
Earlier it became known that consumer inflation in Tunisia last month reached 7.8%, which is the highest since October 1991. The acceleration of inflation has been observed for eight months in a row, writes Trading Economics.
Taiwan records a much more moderate increase in consumer prices – by 3.39% in May. However, the economy of the island state has not seen such an indicator since August 2012.
Especially strong inflation is observed in Turkey (73.5% in May) and Argentina (58% in April).
According to the April forecast of the International Monetary Fund, inflation in developing economies this year will average 8.7%. For developed countries, the forecast is 5.7%.
The new forecast of the Organization for Economic Cooperation and Development (OECD), published on Wednesday, provides that in the countries of the organization, inflation in 2022 will be 8.5%, in the G20 members – 7.6%.
Europe will take a number of measures to optimize the economy to stop the acceleration of inflation. This was stated in the relevant ministries of the countries. The price growth in the eurozone reached 8.1% in May, breaking the historical record in April of 7.4%. The main factor is the rise in energy prices, and there is still a gradual launch of the embargo on Russian oil ahead. The ECB considers raising the key rate as one of the measures to combat the inflationary spiral. However, European experts believe that this may even worsen the situation, provoking a recession in a number of countries of the association
In May, inflation in the eurozone set a historic high, reaching 8.1% (in annual terms). Such data was published by the European statistical office Eurostat. Moreover, the May indicator exceeded the April one (7.4%), which was already considered a historical maximum for unification.
The catalyst for inflation in Europe was the rise in energy prices. This is evidenced by the figures, because the economy of the Baltic states, which refused Russian gas back in April, suffered the most. In Estonia, inflation was 20.1%, in Lithuania — 18.5%, in Latvia — 16.4%.
The population of the largest economies in Europe also felt the price increase. Thus, the inflation rate in Germany in May, according to the Federal Statistical Office Destatis, approached 7.9%. And according to calculations according to EU standards, the price increase amounted to 8.7% at all.
The inflation rate, similar to the level of May 2022, was last recorded in Germany in the winter of 1973-1974, when oil prices also rose sharply due to the first oil crisis,” Destatis said in a statement.
Germans have a hard time in Berlin and Brandenburg. Here salaries and pensions are below average compared to the rest of the federal lands, and for people living in poverty, especially high
The German Finance Ministry said: the head of the department, Christian Lindner
We must fight this so that there is no economic crisis and so that the spiral in which inflation is fueled by itself does not spin
As measures to resolve the crisis, the government of the country reduced the tax on gasoline and diesel fuel, and from June 1 introduced preferential prices for transport (now a single travel card for a month costs € 9). However, these measures are not enough yet. According to a survey by the Forsa Institute, 65% of respondents believe that the government should do more to combat high inflation.