New Inflationary Regime Takes Hold
Around the world major economies are grappling with an extraordinary bout of inflation that has put to an end a disinflationary regime that lasted for 40 years. The euro area hit a record 8.1% rate in May. The UK’s consumer price index (CPI) rose by 9% in April – a rate not seen since the early 1980s. The Japanese producer price index (PPI) rose to 10% year-on-year the same month. Germany’s Chamber of Industry and Commerce expects inflation to reach 7.7% in 2022 – double last year’s rate in this the most inflation-phobic of countries.
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