It’s a World of Inflation
Prices are still rising too fast for comfort in many major economies, and policymakers across the globe are trying to wrestle them under control.
Inflation Rates Around the World
Year-over-year percentage change in consumer
prices for a selection of countries as of May.
Russia
+2.5%
Japan
+3.2%
Eurozone
+6.1%
U.S.
+4.0%
China
+0.2%
India
+4.4%
Indonesia
+4.0%
Brazil
+3.9%
Australia
+7.0%
Chile
+8.7%
South
Africa
+6.6%
Argentina
+114.2%
Inflation Rates Around the World
Year-over-year percentage change in consumer prices for a selection of countries as of May.
Sweden
+9.7%
Norway
+6.7%
Iceland
+9.5
Britain
+7.9%
Russia
+2.5%
Canada
+3.4%
Eurozone
+6.1%
Turkey
+39.6%
U.S.
+4.0%
Japan
+3.2%
South
Korea
+3.3%
China
+0.2%
Israel
+4.6%
Saudi
Arabia
+2.8%
Mexico
+5.8%
India
+4.4%
Colombia
+12.4%
Indonesia
+4.0%
Brazil
+3.9%
Australia
+7.0%
South Africa
+6.6%
Chile
+8.7%
Argentina
+114.2%
Sweden
+9.7%
Norway
+6.7%
Iceland
+9.5
Britain
+7.9%
Russia
+2.5%
Canada
+3.4%
Czech.
Rep.
+11.1%
Eurozone
+6.1%
Hungary
+21.5%
Turkey
+39.6%
United
States
+4.0%
Inflation Rates
Around the World
Japan
+3.2%
South
Korea
+3.3%
Israel
+4.6%
China
+0.2%
Year-over-year percentage change in consumer prices for a selection of countries as of May.
Saudi
Arabia
+2.8%
Mexico
+5.8%
India
+4.4%
Colombia
+12.4%
Indonesia
+4.0%
Brazil
+3.9%
Australia
+7.0%
South Africa
+6.6%
Chile
+8.7%
Argentina
+114.2%
By Karl Russell and Jeanna Smialek
From Melbourne to Manchester to Miami, people are struggling under the weight of hefty price increases for the things they buy each day.
The worst spike in inflation that many advanced economies have seen in decades underscores the global forces driving prices higher, namely the disruptions set in motion by the coronavirus pandemic.
The stakes are high for policymakers around the world, who are facing similar problems. To try to get inflation under control, central bankers have rapidly lifted interest rates, trying to slow their economies in hopes of cooling prices.
+10
%
UNITED
STATES
CANADA
+8
Inflation
+6
+4
Policy
rate
+2
0
’19
’20
’21
’22
’23
’19
’20
’21
’22
’23
+10
%
BRITAIN
EUROZONE
+8
+6
+4
+2
0
’19
’20
’21
’22
’23
’19
’20
’21
’22
’23
+10
%
AUSTRALIA
NORWAY
+8
+6
+4
+2
0
’19
’20
’21
’22
’23
’19
’20
’21
’22
’23
+10
%
UNITED
STATES
CANADA
EUROZONE
+8
Inflation
+6
+4
Policy
rate
+2
0
’19
’20
’21
’22
’23
’19
’20
’21
’22
’23
’19
’20
’21
’22
’23
+10
%
AUSTRALIA
BRITAIN
NORWAY
+8
+6
+4
+2
0
’19
’20
’21
’22
’23
’19
’20
’21
’22
’23
’19
’20
’21
’22
’23
If they fail to bring inflation under control, it could result in a destabilizing period of spiraling prices. Higher and less predictable inflation would squeeze families and businesses and make it harder to plan for the future.
But if economic policymakers react too aggressively — and all at once — it could crimp global economic growth to a painful degree. That could raise the risk of a major recession that shutters businesses and puts people out of work. Given the potential cost, policymakers do not want to overdo it, harming their economies more than is necessary to bring down inflation.
Many central banks are approaching those trade-offs similarly: They are focused on fighting stubbornly high inflation. Officials fear that if they let inflation persist for too long, it could become entrenched and prove even more painful to stamp out.
The leaders of major central banks in North America, Europe and elsewhere have said recently that they expect to continue raising rates, as inflation is moderating but remains well above their typical target rates — which are often around 2 percent.
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