Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
global inflation continues to rise
Economy

Global inflation gaining momentum: a review of the global economy

18.01.2023
2 min read

Global inflation reaches a record high for the global economy

According to the IMF, global inflation has reached the maximum level, and if the situation does not change in the near future, the market will face a serious crisis. For now, experts hope that central banks, which are working hard to bring back price stability, will be able to stop the rise in inflation.
The U.S. inflation rate reached 8 percent last month, a record high for the country. According to analysts at the International Monetary Fund, this mark is a peak, and it is crucial to regain control of the situation soon. The target for regulators is 2%, but experts doubt that even one country will be able to reach such a mark.
Special attention should be paid to supply chains. If the level of diversification here increases, then it will have a negative impact on price growth, reinforcing its dynamics.
The main tool of central banks to combat rising inflation is an increase in interest rates. However, there is a flip side here – such actions increase the risk of recession in the global economy.According to the latest data, about 90 regulators raised interest rates last year, and 50% of them raised the rate by 75 bps or more just once. At the same time, many central banks revised rates several times. As a result, the global economy faced the toughest monetary policy measures in the last 15 years. JPMorgan estimates that last quarter saw the largest rate hike since 1980, and regulators aren’t going to stop yet as inflation continues to rise. At the same time, banks admit that the increase primarily affects households and businesses, which in turn has a negative impact on economic development in general. Despite the seriousness of the situation, regulators do not yet know how to solve the problem with minimal damage to the population. The Bank of England has already acknowledged that the UK will begin to experience a recession early this year, which may be observed next year as well.
The inflation target for the Fed is 2%, but BlackRock analysts note that if this target is achieved, then the country will face a deep recession and an increase in the number of unemployed to 3 million people. The European Central Bank also admits that a return to the target would do more harm than good.
However, it should be taken into account that the impact of rising interest rates is not immediately reflected in changes in the economy. In addition, it is also affected by the energy crisis and supply chain disruptions that are beyond the control of central banks.

Tags: Economy
0
Previous Post Karl Rabeder: the businessman who gave up everything Next Post Electric car manufacturer Lucid presented its quarterly report

You Might Also Like

Russia's economic recovery-2
Economy
How Russia’s economic recovery is going
23.12.2021
The United States has hit
Economy
U.S. has hit China’s technology sector
21.07.2021
economic bottom
Economy
Latin America faces an economic bottom: analysts’ forecasts
07.05.2021
E-krona from Sweden's central bank
Economy
Sweden’s central bank plans to introduce its own digital currency e-krona
09.07.2022
Chinese economic development
Economy
Chinese economic development: forecast for 10 years
17.05.2021
Chinese authorities
Economy
The Chinese authorities decided to reduce duties for the U.S.
29.10.2020

Recent Posts

  • 1Noventiq
    Noventiq plans to float on the Nasdaq exchange
    29.05.2023
  • 2AI impact on transformation of the economy
    Is the world facing an imminent economic transformation?
    28.05.2023
  • 3Siemens digital bond
    Siemens digital bond: industrial giant offers to invest in blockchain-based securities
    27.05.2023
  • 4credit rating
    The Fitch agency left Latvia’s credit rating unchanged
    26.05.2023
  • 5Ernest Rady
    Ernest Rady: talented financier and successful businessman
    25.05.2023

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • John Pierpont Morgan: Biography of the influential financier and entrepreneur

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Latest Posts

Noventiq
Noventiq plans to float on the Nasdaq exchange
29.05.2023
AI impact on transformation of the economy
Is the world facing an imminent economic transformation?
28.05.2023
Siemens digital bond
Siemens digital bond: industrial giant offers to invest in blockchain-based securities
27.05.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • John Pierpont Morgan: Biography of the influential financier and entrepreneur
  • SPAC-companies may appear in Russia by the end of 2022
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics