According to economists, due to Corona, there has been a huge gap in demand and supply around the world, due to which prices are seeing an increase.
Why is the inflation rate increasing across the world?
In the year 2021, people in Turkey saw the prices of food and household goods increasing by one and a half times. At the same time, with the new year in Kazakhstan, the government fell and there was a state of emergency in the country. The situation is that the inflation rate in many countries around the world has reached the highest level in decades. After all, what is the reason that this year inflation has become a big headache for the governments around the world.
Where did the world inflation rate reach?
According to Fitch Ratings, their inflation rate in many countries around the world has reached the highest level in decades. At the same time, America’s inflation rate reached 39-year highs in November. Eurozone inflation is at its all-time high. Germany’s inflation rate is at a 29-year high. At the same time, according to the data of the IMF, according to the figures (with preliminary and estimated) in the year 2021, the inflation rate has reached above 10 percent in 20 countries around the world. At the same time, the number of countries with double digit inflation in 2020 was 18. Before the epidemic, that is, in the year 2019, inflation rate was more than 10 percent in only 13 countries. India is at 50th position in this list. And America is in 68th place. However, the inflation rate in America has reached its record levels. In the year 2021, America’s inflation rate has increased to 6.8 percent, which is the highest level since 1982. At the same time, there is a steady increase in America every month since mid-2021. In India too, there is a steady increase in the inflation rate. Although self-reliance in food products to an extent, strong in foreign exchange reserves, inflation is not going out of control. On the other hand, countries that are largely dependent on foreign imports are struggling with inflation. Due to the policies of the different government, the currency of Turkey has broken down a lot. Due to which imports are becoming very expensive and commodity prices have increased by 40 percent.
Why are prices rising
The biggest reason for the increase in prices is the corona epidemic. After the release of the US inflation data, the White House’s official statement said that this increase in prices is temporary and the rise in inflation is being seen due to the Corona crisis, if economists and brokerage houses are to be believed, then Corona is spreading all over the world. Because of this, the math of demand and supply has completely deteriorated. Due to the uncertainty of demand and labor shortage, companies and countries in many sectors have limited their production, which includes important products like metals and crude oil. Important among metal producing countries, China and crude oil producing country OPEC Plus have both cut production significantly and are talking about increasing production gradually. However, on the other hand, with the improvement in the situation of Corona, the demand from the customers has started showing. Due to this, the effect of shortage of raw material has been seen on the prices of the products. At the same time, the shortage of laborers is also a big reason. The impact of the shortage of containers has been seen on the freight movement by sea. In fact, due to lack of laborers for loading and unloading of containers, goods are taking more time than ever to reach from one place to another. Then there is the possibility of a bad effect on the supply, due to which the prices are increasing.