The world economy is experiencing unprecedented inflation so far this century. According to April 2022 forecasts from the International Monetary Fund (IMF), the inflation rate could average 7.4% globally this year.
Emerging and developing economies will be the hardest hit by this generalized increase in prices, as they are expected to register 8.7% inflation. In the most advanced economies, this percentage would stand at 5.7%, a much higher figure than that registered in the three years prior to the pandemic, when it did not exceed 2%.
The causes of this phenomenon, which used to be a problem in low-income economies or in serious economic crises, stems from several factors. According to the IMF analysis, these include the large increase in demand in 2021, a year in which the supply of products was also limited by restrictions and the shortage of workers.
Like little, Russia’s war in Ukraine it further contracted the availability of raw materials and caused food and energy prices to rise. For these reasons, inflation is expected to continue to be a problem in the coming years.
As this graph from Statista shows, no country in the world will have more inflation than Venezuela this year, where it could reach 500%. Sudan would be the second most affected economy, with a rate of more than 245%, followed by Zimbabwe (86.7%), Turkey (60.5%), Yemen (59.7%) and Argentina (51.7%). .
Embarking on a war in its neighboring country could cost Russia 21.3% inflation in 2022, one of the highest in the world. In United Statesprices could increase an average of 7.7% this year, almost double what was registered in 2021 and six times more than in 2020. In turn, Japan and China they would have two of the lowest inflation rates in 2022, with only 1% and 2.1%, respectively.