2021–2023 inflation surge#Europe

{{See also|Global energy crisis (2021–2023)|2022–2023 global food crises}}

Consumer spending on goods in the United States and elsewhere moved in tandem with spending on services (see goods and services) before the COVID-19 recession, but upon emerging from the recession consumers shifted spending towards goods and away from services, particularly in the United States. This shift placed stress on supply chains, such that the supply of goods could not meet demand, resulting in price increases. In November 2021 inflation in the United States was 14.9% for durable goods, compared to 10.7% for consumable goods and 3.8% for services. Similar situations occurred in several other major economies. Supply chain stresses increased prices for commodities and transportation, which are cost inputs for finished goods.{{Cite news |first1=Ira |last1=Kalish |first2=Michael |last2=Wolf |date=February 18, 2022 |title=Global surge in inflation |publisher=Deloitte |url=https://www2.deloitte.com/xe/en/insights/economy/is-the-global-surge-in-inflation-here-to-stay.html |url-status=live |archive-url=https://web.archive.org/web/20220620111910/https://www2.deloitte.com/xe/en/insights/economy/is-the-global-surge-in-inflation-here-to-stay.html |archive-date=June 20, 2022}}

In countries where food constituted a large part of the inflation increase, rising prices forced low-income consumers to reduce spending on other goods, thereby slowing economic growth. "In those countries with high inflation, consumer spending has weakened because household spending power has taken a hit from rising prices," said William Jackson of Capital Economics, "And you've generally seen much more aggressive moves to tighten monetary policy."{{Cite web |title=Rising costs: How emerging economies are being affected by inflation |url=https://www.weforum.org/agenda/2022/02/explainer-how-is-inflation-hitting-low-income-households-in-developing-nations/ |url-status=live |archive-url=https://web.archive.org/web/20220616144357/https://www.weforum.org/agenda/2022/02/explainer-how-is-inflation-hitting-low-income-households-in-developing-nations |archive-date=June 16, 2022 |website=World Economic Forum |date=February 23, 2022 |language=en}}

In June 2022, The Atlantic published an editorial article critical towards the U.S. Department of the Treasury controlling inflation. In 2021, Janet Yellen called the risk of inflation "small" and "manageable", and equally Federal Reserve Chairman Jerome Powell thought inflation would be "transitory", even as inflation rose above 6 percent. In 2023, the International Monetary Fund ascertained that "food and energy are the main drivers of this inflation", as rising prices continue to squeeze living standards not only in North America but worldwide.Surowiecki, James (June 10, 2022). [https://www.theatlantic.com/ideas/archive/2022/06/what-is-causing-inflation-janet-yellen-jerome-powell/661237/ "How Did They Get Inflation So Wrong?"] The Atlantic. Accessed 24 March 2023.[https://www.imf.org/en/Blogs/Articles/2022/09/09/cotw-how-food-and-energy-are-driving-the-global-inflation-surge "How Food and Energy are Driving the Global Inflation Surge"] imf.org. Accessed 24 March 2023.

Six out of ten (59%) EU enterprises were concerned about energy prices in 2023, and five out of ten (47%) were concerned about uncertainty, with some country variations.{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20230285-econ-eibis-2023-eu |title=EIB Investment Survey 2023 - European Union overview |date=2023-10-12 |publisher=European Investment Bank |isbn=978-92-861-5609-0 |language=EN}} Energy cost rises were more common in EU businesses than in US firms (93% vs. 83%).{{Cite web |title=Study on Energy Prices, Costs and Subsidies and their Impact on Industry and Households |url=https://www.enerdata.net/about-us/company-news/energy-prices-and-costs-in-europe.pdf}} Manufacturing businesses were the most likely to have encountered a 25% or more rise in energy spending, while the construction sector had the lowest number of firms suffering a 25% or greater increase in energy spending, although more than half of firms reported this.{{Cite web |last1=Hieminga |first1=Gerben |last2=Sante |first2=Maurice van |title=The sectors most affected by soaring energy prices |url=https://think.ing.com/articles/the-sectors-most-affected-by-soaring-energy-prices/ |access-date=2023-10-24 |website=ING Think |language=en}}{{Cite web |title=World Energy Transitions Outlook 2022 |url=https://www.irena.org/Digital-Report/World-Energy-Transitions-Outlook-2022 |access-date=2023-10-24 |website=www.irena.org |language=en}}

{{Main|2021–2023 global supply chain crisis}}

Some economists{{Cite web |date=November 10, 2021 |title=How the supply chain caused current inflation, and why it might be here to stay |url=https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay |access-date=August 26, 2022 |website=PBS NewsHour |language=en-us}} attribute the U.S. inflation surge to product shortages resulting from the global supply-chain problems, itself largely caused by the COVID-19 pandemic.{{Cite news |last=Austin |first=Craig |date=November 10, 2021 |title=How the supply chain caused current inflation, and why it might be here to stay |url=https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay |url-status=live |archive-url=https://web.archive.org/web/20220103090531/https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay |archive-date=January 3, 2022 |work=PBS}} This coincided with strong consumer demand, driven by low unemployment and improved financial conditions following the pandemic.* {{Cite news |last=Van Dam |first=Andrew |date=January 13, 2022 |title=2021 shattered job market records, but it's not as good as it looks |url=https://www.washingtonpost.com/business/2022/01/08/2021-shattered-records-but/ |url-status=live |archive-url=https://web.archive.org/web/20220415193954/https://www.washingtonpost.com/business/2022/01/08/2021-shattered-records-but/ |archive-date=April 15, 2022 |newspaper=The Washington Post}}

• {{cite news |author1=Jason Furman |author2=Wilson Powell III |date=January 28, 2022 |title=US wages grew at fastest pace in decades in 2021, but prices grew even more |url=https://www.piie.com/blogs/realtime-economic-issues-watch/us-wages-grew-fastest-pace-decades-2021-prices-grew-even-more |url-status=live |archive-url=https://web.archive.org/web/20220606130820/https://www.piie.com/blogs/realtime-economic-issues-watch/us-wages-grew-fastest-pace-decades-2021-prices-grew-even-more |archive-date=June 6, 2022 |publisher=Petersen Institute for International Economics}} The higher demand caused by the U.S. government's $5 trillion aid spending exacerbated supply-side issues in the United States; according to the Federal Reserve Bank of San Francisco researchers, this contributed 3 percentage points to inflation by the end of 2021.{{cite web |last=Sherman |first=Natalie |date=14 June 2022 |title=Why is inflation in US higher than elsewhere? |url=https://www.bbc.co.uk/news/business-61569559 |access-date=14 June 2022 |work=BBC News |language=en-GB}} They argued that the spending measures were nevertheless necessary to prevent deflation, which would have been harder to manage than inflation.{{cite web |author1=Jordà, Òscar |author2=Liu, Celeste |author3=Nechio, Fernanda |author4=Rivera-Reyes, Fabián |date=28 March 2022 |title=Why Is U.S. Inflation Higher than in Other Countries? |url=https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/ |website=Federal Reserve Bank of San Francisco}}

Consumer prices have reached an all-time high within the last thirty years, soaring by 6.2% from the previous year, things like restaurant prices to clothes and the most popular being fuel, have drastically increased.{{Cite web |date=2021-11-10 |title=How the supply chain caused current inflation, and why it might be here to stay |url=https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay |access-date=2022-11-14 |website=PBS NewsHour |language=en-us}} Fuel prices rose by 49% from January to June 2022 in the United States.{{Cite web |title=Record Breaking Increases in Motor Fuel Prices in 2022 {{!}} Bureau of Transportation Statistics |url=https://www.bts.gov/data-spotlight/record-breaking-increases-motor-fuel-prices-2022#:~:text=From%20January%20to%20June%202022,%20the%20price%20of,stay-at-home%20orders%20in%20response%20to%20COVID-19%20(figure%201). |access-date=2022-11-14 |website=www.bts.gov}} During the pandemic, the number of workers working worldwide plunged and had an immediate impact on the United States as less than a third of the global population has been vaccinated. Countries that supplied the United States with shoes and clothes such as Vietnam have had factory hub shortages due to not having enough vaccinated workers.{{Citation needed|date=August 2024}}

In June 2022, BlackRock CEO Larry Fink argued that consumer demand in the United States had remained steady compared to pre-pandemic years, with supply-chain issues overseas being the primary cause of the post-pandemic inflation surge. He attributed this to some countries taking longer (than the U.S.) to resume economic activity, thereby disrupting international trade.{{Cite AV media |title=BlackRock CEO Larry Fink on Inflation, ESG Investing |date=June 2, 2022 |url=https://www.youtube.com/watch?v=BnNbZmE3beA |access-date=2022-10-17 |language=en |via=YouTube }}

{{See also|Data center#Impact on electricity prices}}

During the COVID-19 lockdown, demand shifts during the pandemic towards many home-related goods outpaced supply, contributing to inflation.{{Cite web |last=Zahn |first=Max |date=March 2, 2023 |title=The economy has delivered good news. Are recession fears over? |url=https://abcnews.go.com/Business/economy-delivered-good-news-recession-fears/story?id=97228024 |access-date=2024-08-20 |website=ABC News |language=en |quote=Meanwhile, COVID forced billions worldwide indoors, shifting demand away from concert tickets and restaurant meals and toward the exact goods in short supply. The Russia-Ukraine war has exacerbated the shortages and sent prices even higher.}}{{Cite news |last=Shalal |first=Andrea |date=February 16, 2022 |title=IMF sees inflation as 'significant risk,' but eyes gradual moderation in rising prices |url=https://www.reuters.com/markets/us/imf-sees-inflation-significant-risk-eyes-gradual-moderation-rising-prices-2022-02-16/ |work=Reuters |quote=The International Monetary Fund said inflation had "continued to surprise on the upside" mainly due to rising commodity and shipping prices, continued mismatches in supply and demand, and shifting demand for more goods.}} Demand for groceries has continued to be high after the pandemic as people's habits have changed, which is one of the factors pushing up grocery prices into 2024.{{Cite news |last1=Bhattarai |first1=Abha |last2=Stein |first2=Jeff |date=2024-02-03 |title=Inflation has fallen. Why are groceries still so expensive? |url=https://www.washingtonpost.com/business/2024/02/02/grocery-price-inflation-biden/ |access-date=2024-08-20 |newspaper=Washington Post |language=en-US |issn=0190-8286 |quote=At the same time, demand for food — particularly meat, nuts and fresh produce — has remained elevated, as Americans splurge on higher-quality specialty goods and organic items, according to Thilmany, of Colorado State University. Households are generally allocating more to groceries than they were before the pandemic, even after accounting for inflation, in part because their buying habits have changed, she said.}} Increasing energy demand is one of the causes of persistent energy inflation.{{Cite web |last=Estes |first=Adam Clark |date=2024-08-15 |title=The hidden reason why your power bill is so high |url=https://www.vox.com/technology/366885/utility-power-bill-price-clean-energy |access-date=2024-08-20 |website=Vox |language=en-US |quote=Why are our electricity bills getting so expensive? Energy prices have been creeping up across the nation for over a decade. The latest consumer price index saw inflation dip below 3 percent for the first time since 2021, but inflation for electricity prices nationwide remains stubbornly high at 4.9 percent. There’s no single reason why electricity keeps getting more expensive in any one place, however. The drivers behind rising energy costs are myriad, overlapping, and vexing. Inflation, rising energy demands, volatile natural gas prices, and extreme weather are all contributing factors...}}

{{Main article|Monetary policy}}

Among the factors contributing to the surge of inflation were the unprecedented levels of fiscal and monetary stimulus enacted to sustain household incomes and the liquidity of financial institutions in the 2020–2021 period. Many governments around the world adopted such stimulatory actions early in the COVID-19 pandemic.{{Cite web |title=Policy Responses to COVID19 |url=https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 |access-date=2022-10-18 |website=IMF |language=en}}{{cite web |url=https://nymag.com/intelligencer/2020/05/were-paying-for-coronavirus-stimulus-by-printing-money.html |title=We're Paying for Coronavirus Stimulus by Printing Money. And That's Fine! |last=Levitz |first=Eric |date=2020-05-15 |publisher=New York |access-date=2023-06-27}}{{cite news|url=https://www.nasdaq.com/articles/money-printing-and-inflation:-covid-cryptocurrencies-and-more|title=Money Printing and Inflation: COVID, Cryptocurrencies and More|publisher=Nasdaq|author=Ron Surz}}{{cite journal|title=Nigeria: Inflation - Money Supply Hits N46.5 Trn, Clickbait 5 Years|website=Allafrica.com |date=June 13, 2022|publisher=Gale Academic OneFile|url=http://link.gale.com/apps/doc/A706979247/AONE?u=wikipedia&sid=ebsco&xid=6df40113}}

Some immediate actions were taken by banking systems around the world by increasing interest rates or making changes to other policies. Higher interest rates make borrowing more expensive, reducing consumption. This is put into place purposely to maintain a level of consumption that will contribute to a steady level of inflation or decrease it, this is also known as inflation targeting.{{Cite web |title=Contractionary Monetary Policy |url=https://corporatefinanceinstitute.com/resources/economics/contractionary-monetary-policy/ |access-date=2022-11-14 |website=Corporate Finance Institute |language=en-US}}

Deficit spending increases inflation,{{Cite news |last1=Schneider |first1=Howard |last2=Slobin |first2=Sarah |date=2024-06-25 |title=The Trump Biden Rematch |url=https://www.reuters.com/graphics/USA-ELECTION/TRUMP-BIDEN-ECON/lgvdoowmkpo/ |access-date=2024-07-26 |work=Reuters |language=en}} as detailed in the fiscal theory of the price level.{{Cite news |last=Ip |first=Greg |date=November 2, 2022 |title=To Solve Inflation, First Solve Deficits, This Theory Advises |url=https://www.wsj.com/articles/to-solve-inflation-first-solve-deficits-this-theory-advises-11667391310 |work=WSJ}}{{Cite news |last=Chancellor |first=Edward |date=April 14, 2023 |title=A flawed but useful economic model for a bleak age |url=https://www.reuters.com/breakingviews/flawed-useful-economic-model-bleak-age-2023-04-14/ |work=Reuters}} Tax cuts are generally viewed as inflationary while tax hikes are usually viewed as deflationary.{{Cite web |last=Subramaniam |first=Tara |date=2021-08-06 |title=Fact-checking Republican attempts to blame inflation on Democrats {{!}} CNN Politics |url=https://www.cnn.com/2021/08/06/politics/inflation-gop-fact-check/index.html |access-date=2024-07-26 |website=CNN |language=en}}{{Cite news |last=Lopez |first=German |date=2024-01-02 |title=The Debt Matters Again |url=https://www.nytimes.com/2024/01/02/briefing/national-debt.html |access-date=2024-07-26 |work=The New York Times |language=en-US |issn=0362-4331}}

File:CPI_vs_M2_money_supply_increases.png money supply (red); recessions in gray]]

Milton Friedman, a libertarian-conservative monetary economist who was awarded the 1976 Nobel Prize in economics, said in 1963 that "inflation is always and everywhere a monetary phenomenon." Austrian school economist Gottfried von Haberler amplified Friedman in 1985, asserting, "there has never been a significant inflation or stagflation — prices rising, say, by 4 percent or more a year for two or more years — without a significant growth in the stock of money." This quantity theory of money has long been popular with libertarian-conservative critics of the Federal Reserve. During the pandemic and its immediate aftermath, the M2 money supply increased at the fastest rate in decades, leading some to link the growth to the inflation surge. Fed chairman Jerome Powell said in December 2021 that the once-strong link between the money supply and inflation "ended about 40 years ago," due to financial innovations and deregulation. Powell's immediate predecessors, Ben Bernanke and Alan Greenspan, had previously concurred with this position. The broadest measure of money supply, M3, increased about 45% from 2010 through 2015, far faster than GDP growth, yet the inflation rate declined during that period — the opposite of what monetarism would have predicted. A lower velocity of money than was historically the case{{cite news |title=Velocity of M2 Money Stock |url=https://fred.stlouisfed.org/series/M2V |publisher=Federal Reserve Bank of St. Louis}} was also cited for a diminished effect of growth in the money supply on inflation.{{cite news |last1=Hanke |first1=Steve H. |last2=John Greenwood |title=Inflation Was Always a Monetary Phenomenon, Never Transitory |url=https://www.nationalreview.com/2024/01/inflation-was-always-a-monetary-phenomenon-never-transitory/ |work=National Review |date=January 15, 2024}}{{cite news |last1=Lynch |first1=David J. |title=Inflation has Fed critics pointing to spike in money supply |url=https://www.washingtonpost.com/business/2022/02/06/federal-reserve-inflation-money-supply/ |newspaper=The Washington Post |date=February 6, 2022}}

Lags in the construction of new housing were cited as a major factor in inflation in the US,{{Cite news |last=Derby |first=Michael S. |date=September 27, 2022 |title=Fed's Harker says housing shortage a key inflation driver |url=https://www.reuters.com/markets/us/feds-harker-says-housing-shortage-key-inflation-driver-2022-09-27/ |work=Reuters}}{{Cite news |last1=O'Donnell |first1=Katy |last2=Guida |first2=Victoria |date=November 10, 2021 |title=Biden's next inflation threat: The rent is too damn high |url=https://www.politico.com/news/2021/11/10/rent-inflation-biden-520642 |work=Politico |quote=Housing costs just posted one of their largest monthly gains in decades, and many economists expect them to loom large in inflation figures over the next year heading into the 2022 midterm elections. It’s not just economists — the Federal Reserve Bank of New York said in research released Monday that Americans on average expect rents to rise 10.1 percent over the next year, the highest reading in the survey’s history.}}{{Cite web |last1=Mena |first1=Bryan |last2=Bahney |first2=Anna |date=2024-03-08 |title=Biden says he can fix America's housing affordability crisis. Will it work? |url=https://www.cnn.com/2024/03/08/economy/fed-biden-housing-affordability-crisis/index.html |access-date=2024-07-24 |website=CNN Business |publisher=CNN |language=en |quote=Fed Chair Jerome Powell in testimony this week said a growing housing shortage is likely to result in continued housing inflation.}} with Katy O'Donnell of Politico arguing that housing shortages were the single-biggest contributor to inflation.{{Cite news |last=O'Donnell |first=Katy |date=March 18, 2022 |title=The main driver of inflation isn't what you think it is |url=https://www.politico.com/news/2022/03/18/housing-costs-inflation-00015808 |work=Politico |quote=But when it comes to the single biggest driver of runaway prices, Washington’s hands are mostly tied. Skyrocketing housing costs may create even bigger problems for the administration going forward than oil and food price spikes, which are the result of sudden and unforeseen — but probably temporary — events. That’s because there’s no clear end in sight for shelter inflation.}} The U.S. Census Bureau found that if housing costs were taken out, inflation at the end of 2023 would have been 1.8% instead of 3.2%.{{Cite web |last=Boak |first=Josh |date=2024-03-15 |title=Why are so many voters frustrated by the US economy? It's home prices |url=https://apnews.com/article/biden-inflation-housing-trump-home-price-rent-248ef02e197c3a7ffb801e370c529d33 |access-date=2024-07-24 |website=AP News |language=en |quote=}} Reuters noted how shelter costs or 'shelter inflation' surged during the pandemic.{{Cite news |last=Mutikani |first=Lucia |date=February 13, 2024 |title=Rising rents push US inflation higher; rate cuts still expected in 2024 |url=https://www.reuters.com/markets/us/us-consumer-prices-rise-more-than-expected-january-2024-02-13/ |work=Reuters}} Artificial scarcity in the supply of housing, due to NIMBYism, has been a significant factor in making housing more expensive.{{Cite web |last=Levitz |first=Eric |date=2024-02-18 |title=How NIMBYs are helping to turn the public against immigrants |url=https://www.vox.com/24074353/immigration-housing-zoning-canada-biden-trump |access-date=2024-07-24 |website=Vox |language=en-US}}{{Cite news |last=Casselman |first=Ben |date=2024-06-20 |title=The Housing Market Is Weird and Ugly. These 5 Charts Explain Why. |url=https://www.nytimes.com/2024/06/20/business/economy/housing-market-explained.html |access-date=2024-07-24 |work=The New York Times |language=en-US |issn=0362-4331}} Freddie Mac estimated that the housing shortage surged 52% between 2018 and 2020.

{{Main article|Climateflation}}

According to a 2024 study by the European Central Bank, weather and climate change should increase food inflation by more than 0.1% per month.{{Cite web |last=Borenstein |first=Seth |date=2024-03-21 |title=Higher temperatures mean higher food and other prices. A new study links climate shocks to inflation |url=https://apnews.com/article/inflation-climate-change-food-prices-heat-6e5297e12868aaf797529bb755268818 |access-date=2024-07-24 |website=AP News |language=en}} Increased insurance premiums have also occurred in areas that experienced more frequent and intense wildfires and floods due to climate change.{{Cite news |date=July 23, 2024 |title=Home insurance rates are rising due to climate change. What could break that cycle? |url=https://www.npr.org/2024/07/18/1198912918/home-insurance-rates-are-rising-due-to-climate-change-what-could-break-that-cycl |work=NPR}}

{{Main article|Greedflation}}

In the United States, some Democratic politicians,{{r|NYT_2022-06-14|p=|q=In recent months, some Democrats have landed on a new culprit: price gouging. ... The White House has backed the claim, and congressional Democrats have introduced bills that target price gouging. ... For Democrats, it is a convenient explanation as inflation turns voters against President Biden. It lets Democrats deflect blame from their pandemic relief bill, the American Rescue Plan, which experts say helped increase prices. And it lets them recast inflation as the fault of monopolistic corporations — which progressives have long railed against.}}{{r|BB_2022-05-19|p=|q=It's part of a broader narrative that President Joe Biden and his party has championed that a swath of companies -- from energy firms to meat packers -- is taking advantage of pandemic-related disruptions to jack up prices all the more in an effort to boost profits. But most economists, including many aligned with Democrats, counter that there's little evidence such practices are behind the inflation crisis.}} economists and observers{{Cite news |last=Peck |first=Emily |date=May 18, 2023 |title=Once a fringe theory, "greedflation" gets its due |url=https://www.axios.com/2023/05/18/once-a-fringe-theory-greedflation-gets-its-due |work=Axios |quote=Once dismissed as a fringe theory, the idea that corporate thirst for profits drives up inflation, aka 'greedflation,' is now being taken more seriously by economists, policymakers and the business press.}} have contended that price gouging and 'greedflation' exacerbated the inflation surge in the United States.{{r|NYT_2022-06-14|p=|q=In recent months, some Democrats have landed on a new culprit: price gouging. ... The White House has backed the claim, and congressional Democrats have introduced bills that target price gouging. ... For Democrats, it is a convenient explanation as inflation turns voters against President Biden. It lets Democrats deflect blame from their pandemic relief bill, the American Rescue Plan, which experts say helped increase prices. And it lets them recast inflation as the fault of monopolistic corporations — which progressives have long railed against.}}{{Cite news |last=Brooks |first=Khristopher J. |date=May 27, 2022 |title=Companies use inflation to hike prices and generate huge profits, report says |publisher=CBS News |url=https://www.cbsnews.com/news/retail-price-gouging-lowes-amazon-target-accountable-us/ |url-status=live |archive-url=https://web.archive.org/web/20220625121623/https://www.cbsnews.com/news/retail-price-gouging-lowes-amazon-target-accountable-us/ |archive-date=June 25, 2022 | quote=Some of the nation's largest retailers have been using soaring inflation rates as an excuse to raise prices and rake in billions of dollars in additional profit, a corporate watchdog group charged on Friday. ... The report highlights an ongoing debate about the causes of inflation, with some consumer advocates arguing that corporations are using inflation as a justification for passing on even higher price hikes to consumers. ... To be sure, inflation is rising sharply due to a number of underlying economic issues, such as supply-chain bottlenecks, labor shortages and strong demand from consumers. }}{{Cite news |last=DePillis |first=Lydia |date=June 3, 2022 |title=Is 'Greedflation' Rewriting Economics, or Do Old Rules Still Apply? |work=The New York Times |url=https://www.nytimes.com/2022/06/03/business/economy/price-gouging-inflation.html |url-status=live |archive-url=https://web.archive.org/web/20220625122819/https://www.nytimes.com/2022/06/03/business/economy/price-gouging-inflation.html |archive-date=June 25, 2022 | quote=When thinking about greedflation, it's helpful to break it down into three questions: Are companies charging more than necessary to cover their rising costs? If so, is that enough to meaningfully accelerate inflation? And is all this happening because large companies have market power they didn't decades ago? ... There is not much disagreement that many companies have marked up goods in excess of their own rising costs. ... When all prices are rising, consumers lose track of how much is reasonable to pay. ... But most of the public argument has been about whether companies with more market share have been affecting prices once goods are finished and delivered. And that's where many economists become skeptical, noting that if these increasingly powerful corporations had so much leverage, they would have used it before the pandemic. }} They argue that the market concentration that has occurred in recent decades in some major industries, especially retailing, has given companies the ability to wield near-monopolistic pricing power.{{r | NYT_2022-06-03 }} Many economists responded by noting that if these large corporations indeed had so much market power, they could have used it to increase prices at any time, regardless of the pandemic.{{r | NYT_2022-06-03 }}

In 2022, several economists stated that price gouging could be a minor contributor to continuing inflation, but it is not one of the major underlying causes that started this surge.{{Cite news |last=Lopez |first=German |date=June 14, 2022 |title=Inflation and Price Gouging - We look at whether "greedflation" is causing higher prices. |work=The New York Times |url=https://www.nytimes.com/2022/06/14/briefing/inflation-supply-chain-greedflation.html |url-status=live |archive-url=https://web.archive.org/web/20220625122822/https://www.nytimes.com/2022/06/14/briefing/inflation-supply-chain-greedflation.html |archive-date=June 25, 2022 | quote=But inflation gives greedy, monopolistic companies a chance to take advantage, said Lindsay Owens, the executive director of the left-leaning Groundwork Collaborative. Profiteering "is an accelerant of price increases," she told me. "It is not the primary cause." ... More recent developments have also weakened the greedflation theory. Inflation has remained high ... But the stock market has plummeted; ... If the pursuit of profits were driving more inflation, you would not expect to see that.}}{{r|CBS_2022-05-27}}{{r|NYT_2022-06-03}}{{cite news | url=https://www.bloomberg.com/news/articles/2022-05-19/-greedflation-pits-democrats-against-like-minded-economists | title=Democrats' 'Greedflation' Claims Run Up Against Scant Evidence - Some Democrats accuse companies of bilking US consumers | last1=Smith | first1=Molly | last2=Wasson | first2=Erik | newspaper=Bloomberg News | date=2022-05-19 | quote=Many Democrats blame price-gouging companies for the worst surge in Americans' cost of living in more than a generation. But economists, including several who are left-leaning, disagree. }} Justin Wolfers, an economist at the University of Michigan quotes Jason Furman, who served as chair of the Council of Economic Advisers under President Obama said, "Blaming inflation on [corporate] greed is like blaming a plane crash on gravity. It is technically correct, but it entirely misses the point."{{ cite news | url=https://www.npr.org/2022/11/29/1139342874/corporate-greed-and-the-inflation-mystery | title=The mystery of rising prices. Are greedy corporations to blame for inflation? | last=Vanek Smith | first=Stacy | newspaper=NPR | date=2022-11-29 | quote=Wolfers says companies are always trying to charge as much as they possibly can. In fact, the only reason we're not all paying $800 for a pair of socks or a cheeseburger is simply due to greed in another form: competition. ... "Inflation is coming from demand," says Wolfers. In spite of inflation, demand hasn't really blinked. Companies have been raising prices and we have been paying them. In fact, in many parts of the economy, spending has been rising right along with prices. ... And when our buying slows down, Wolfers says, companies will start lowering prices to entice us to buy: Prices will fall and inflation will ease. But, until demand drops, companies will push prices up as much as they can. It's elementary. }} Wolfers states that companies will always charge the highest prices possible, but that competition keeps prices in check.{{ r | NPR_2022-11-29 }}

Some economists have stated that during times of high inflation, consumers know prices are increasing but may not have a good understanding of what reasonable prices should be, allowing retailers to raise prices faster than the cost inflation they are experiencing, resulting in larger profits.{{r|NYT_2022-06-14|p=|q=In recent months, some Democrats have landed on a new culprit: price gouging. ... The White House has backed the claim, and congressional Democrats have introduced bills that target price gouging. ... For Democrats, it is a convenient explanation as inflation turns voters against President Biden. It lets Democrats deflect blame from their pandemic relief bill, the American Rescue Plan, which experts say helped increase prices. And it lets them recast inflation as the fault of monopolistic corporations — which progressives have long railed against.}}{{r|CBS_2022-05-27|NYT_2022-06-03}}{{cite news |last=Inman |first=Phillip |date=2023-03-24 |title=Greedflation: are large firms using crises as cover to push up their profits? |url=https://www.theguardian.com/business/2023/mar/24/greedflation-are-large-firms-using-crises-as-cover-to-push-up-their-profits |newspaper=The Guardian |quote=Andrew Bailey, the Bank of England governor, says he has no evidence that excessive profits are pushing up inflation beyond where it would be if companies simply passed on extra costs to consumers, ... Albert Edwards, a senior analyst at Société Générale, ... "Companies [have] under the cover of recent crises, pushed margins higher," he said in a note. "And, most surprisingly, they still continue to do so, even as their raw material costs fall away. Consumers are still ‘tolerating' this ‘excuseflation', possibly because excess [government] largesse has provided households with a buffer. ... Isabella Weber, an economist at the University of Massachusetts Amherst, has shown which kinds of companies are able to benefit from a crisis, giving academic support for what she considers a rational capitalist reaction to a crisis, one that allows them to make even bigger profits when consumers are primed to expect prices to rise in leaps and bounds.}}{{cite news |last1=Donovan |first1=Paul |date=2 November 2022 |title=Fed should make clear that rising profit margins are spurring inflation |url=https://www.ft.com/content/837c3863-fc15-476c-841d-340c623565ae |access-date=12 February 2023 |work=Financial Times |quote=Consumers seem to be buying stories that seem to justify price increases, but which really serve as cover for profit margin expansion.}}

A 2021 analysis conducted by The New York Times found that profit margins across more than 2,000 publicly traded companies were well above the pre-pandemic average during the year, as corporate profits reached a record high.{{ cite news | url=https://www.nytimes.com/2022/05/31/business/stock-market-company-profits.html | title=After a Bumper 2021, Companies Might Struggle to Increase Profits - Businesses face headwinds as demand weakens, the Federal Reserve raises rates and government stimulus programs end. | last1=Eavis | first1=Peter | last2=Talmon | first2=Joseph Smith | newspaper=New York Times | date=2022-05-31 | quote=A New York Times analysis of over 2,000 publicly traded companies outside the financial sector found that most of them increased sales faster than expenses, a remarkable feat when the cost of wages, raw materials and components was rising and supply chains were out of whack. As a result, profit margins, which measure how much money a business makes on each dollar of sales, rose well above the prepandemic average. On the whole, companies made an estimated $200 billion in additional operating profits last year because of that increase in margins. }}{{cite news |last1=Phillips |first1=Matt |title=Corporate profits hit a new record high in 2021 |url=https://www.axios.com/2022/03/31/corporate-profits-new-record-high-2021 |work=Axios |date=March 31, 2022}} Economists at the University of Massachusetts Amherst found that in 2022 profit margins of US companies reached their highest level since the aftermath of World War II.{{cite news |title=Central bankers warn companies on fatter profit margins |url=https://www.ft.com/content/a35d1da4-60f6-4b34-9c04-a5c4f3b4d2cc |work=Financial Times |date=March 29, 2023|author1=Martin Arnold|author2=Patricia Nilsson|author3=Colby Smith|author4=Delphine Strauss}} The economists say firms with a lot of market power in consolidated industries can raise prices under the cover of inflation as a form of implicit cartel-like coordination.{{Cite web |last=Burns |first=Tobias |date=2024-03-29 |title=FTC calls out profits as a driver of grocery prices |url=https://thehill.com/business/4562244-how-retailers-are-profiting-from-food-inflation-profit-inflation-question-gains-new-urgency-from-ftc-report/ |access-date=2024-08-17 |website=The Hill |language=en-US}} European Central Bank economists found in May 2023 that businesses were using the surge as a rare opportunity to boost their profit margins, finding it was a bigger factor than rising wages in fueling inflation during the second half of 2022.{{cite news |last1=Hannon |first1=Paul |title=Why Is Inflation So Sticky? It Could Be Corporate Profits |url=https://www.wsj.com/articles/why-is-inflation-so-sticky-it-could-be-corporate-profits-b78d90b7 |work=The Wall Street Journal |date=May 3, 2023|quote=Inflation has proved more stubborn than central banks bargained for when prices started surging two years ago. Now some economists think they know why: Businesses are using a rare opportunity to boost their profit margins...According to economists at the ECB, businesses have been padding their profits. That, they said, was a bigger factor in fuelling inflation during the second half of last year than rising wages were}}

In January 2023, the Federal Reserve Bank of Kansas City, released a study which stated that "...markup growth likely contributed more than 50 percent to inflation in 2021, a substantially higher contribution than during the preceding decade. However, the markup itself is determined by a host of unobservable factors, ... We conclude that an increase in markups likely provides a signal that price setters expect persistent increases in their future costs of production."{{Cite journal |last1=Glover |first1=Andrew |last2=Mustre-del-Río |first2=José |last3=von Ende-Becker |first3=Alice |date=2023-01-12 |title=How Much Have Record Corporate Profits Contributed to Recent Inflation? - Firms raised markups during 2021 in anticipation of future cost pressures, contributing substantially to inflation. |url=https://www.kansascityfed.org/documents/9329/EconomicReviewV108N1GloverMustredelRiovonEndeBecker.pdf |journal=The Federal Reserve Bank of Kansas City Economic Review |doi=10.18651/er/v108n1glovermustredelriovonendebecker |s2cid=256654064 |issn=0161-2387 }}

Robert Reich, who worked under President Bill Clinton as Labor Secretary, stated, "Nobody believes that price gouging is the main cause of inflation...The question really is whether corporate pricing power is aggravating the situation. And there's a great deal of evidence it is."{{ r | BB_2022-05-19}}

A May 2023 New York Times story reported that despite the costs of doing business falling in recent months, many large corporations have continued to raise prices, contributing to the recent inflation surge. The prices of oil, transportation, food ingredients, and other raw materials have decreased as the shocks from the pandemic and the Russian invasion of Ukraine have faded though many businesses have maintained or even increased their prices and profits. This could lead to an economic downturn created by higher interest rates.{{cite news |last1=Smith |first1=Talmon Joseph |last2=Rennison |first2=Joe |date=May 30, 2023 |title=Companies Push Prices Higher, Protecting Profits but Adding to Inflation |url=https://www.nytimes.com/2023/05/30/business/economy/inflation-companies-profits-higher-prices.html |accessdate=31 May 2023 |work=The New York Times}}

An International Monetary Fund study published in June 2023 found that rising corporate profits accounted for almost half of the increase in euro area inflation during the preceding two years.{{cite news |title=Europe's Inflation Outlook Depends on How Corporate Profits Absorb Wage Gains |url=https://www.imf.org/en/Blogs/Articles/2023/06/26/europes-inflation-outlook-depends-on-how-corporate-profits-absorb-wage-gains |publisher=International Monetary Fund |date=June 26, 2023|author1=Niels-Jakob Hansen|author2=Frederik Toscani|author3=Jing Zhou|quote=As the Chart of the Week shows, the higher inflation so far mainly reflects higher profits and import prices, with profits accounting for 45 percent of price rises since the start of 2022. That's according to our new paper, which breaks down inflation, as measured by the consumption deflator, into labor costs, import costs, taxes, and profits. Import costs accounted for about 40 percent of inflation, while labor costs accounted for 25 percent. Taxes had a slightly deflationary impact.}}

A December 2023 paper published by the UK-based Institute for Public Policy Research and Common Wealth think tanks stated that corporate profiteering played an important role in the inflation spike of 2022. Corporate profits surged while wages failed to keep pace with rising prices, resulting in the working class suffering the largest decline in disposable and discretionary income since World War II.{{cite news |last=Inman|first=Phillip |date=December 7, 2023 |title=Greedflation: corporate profiteering 'significantly' boosted global prices, study shows|url=https://www.theguardian.com/business/2023/dec/07/greedflation-corporate-profiteering-boosted-global-prices-study|work=The Guardian |location= |access-date=January 6, 2024}} 2024 studies by the Groundwork Collaborative had similar findings.{{Cite news |last=Perkins |first=Tom |date=2024-01-19 |title=Half of recent US inflation due to high corporate profits, report finds |url=https://www.theguardian.com/business/2024/jan/19/us-inflation-caused-by-corporate-profits |access-date=2024-08-17 |work=The Guardian |language=en-GB |issn=0261-3077}}{{Cite news |last1=Bhattarai |first1=Abha |last2=Stein |first2=Jeff |date=2024-02-03 |title=Inflation has fallen. Why are groceries still so expensive? |url=https://www.washingtonpost.com/business/2024/02/02/grocery-price-inflation-biden/ |access-date=2024-08-17 |newspaper=Washington Post |language=en-US |issn=0190-8286}}

{{Main article|Fossilflation}}

Shortly after initial energy price shocks caused by the Russian invasion of Ukraine subsided, oil companies found that supply chain constrictions, already exacerbated by the ongoing global COVID-19 pandemic, supported price inelasticity, i.e., they began lowering prices to match the price of oil when it fell much more slowly than they had increased their prices when costs rose.{{cite news |last1=Cronin |first1=Brittany |title=The good times are rolling for Big Oil. 3 things to know about their surging profits |url=https://www.npr.org/2022/05/07/1097177459/big-oil-exxon-earnings-gasoline-prices-crude |access-date=25 May 2022 |work=NPR |date=7 May 2022 |language=en |archive-date=May 21, 2022 |archive-url=https://web.archive.org/web/20220521123900/https://www.npr.org/2022/05/07/1097177459/big-oil-exxon-earnings-gasoline-prices-crude |url-status=live }}

The major American and British oil producers (Big Oil) reported record profits in 2022.{{cite news |last1=Bussewitz |first1=Cathy |title=Unprecedented profit for major oil drillers as prices soared |url=https://apnews.com/article/sports-swimming-e71ce380df372fa2ba257a3175ff0f49 |publisher=Associated Press |date=July 29, 2022}}{{cite news |last1=Simonetti |first1=Isabella |title=Exxon and Chevron Report Record Profits on High Oil and Gas Prices |url=https://www.nytimes.com/2022/07/29/business/exxon-chevron-profit.html |work=The New York Times |date=July 29, 2022}}{{cite news |last1=Klauss |first1=Clifford |title=Oil Giants, With Billions in Profits, Face Criticism and an Uncertain Outlook |url=https://www.nytimes.com/2022/10/28/business/energy-environment/exxon-chevron-profit-biden.html |work=The New York Times |date=October 28, 2022}} Amid longstanding constraints in refinery capacity, refinery profit margins were higher than their historical averages.{{cite news |last1=Sanicola |first1=Laura |title=U.S. gasoline prices are finally falling. Why? |url=https://www.reuters.com/business/energy/us-gasoline-prices-are-finally-falling-why-2022-07-14/ |publisher=Reuters |date=July 14, 2022}} In July, the UK imposed a 25% windfall profit tax on British North Sea oil producers, which expected to raise £5 billion to pay for a government scheme that reduced household energy costs.{{cite news |title=UK lawmakers approve windfall tax on oil and gas producers |url=https://www.reuters.com/world/uk/uk-lawmakers-approve-windfall-tax-oil-gas-producers-2022-07-11/ |publisher=Reuters |date=July 11, 2022}} In late October, U.S. President Joe Biden accused the oil and gas sector of "war profiteering" and threatened to seek a windfall profit tax if the industry did not increase production to curb gasoline prices.{{cite news |last1=Baker |first1=Peter |title=Biden Accuses Oil Companies of 'War Profiteering' and Threatens Windfall Tax |url=https://www.nytimes.com/2022/10/31/us/politics/biden-oil-windfall-tax.html |work=The New York Times |date=October 31, 2022}}

Coming out of the COVID-19 pandemic, some argued for the possibility of a base effect phenomenon due to cheaper than normal prices, such as for oil, at the onset of the pandemic, followed by above-average prices which exacerbated the perceived inflation.{{Cite journal |last1=Koester |first1=Gerrit |last2=Lis |first2=Eliza |last3=Nickel |first3=Christiane |date=2022 |title=Inflation Developments in the Euro Area Since the Onset of the Pandemic |url=https://www.intereconomics.eu/contents/year/2022/number/2/article/inflation-developments-in-the-euro-area-since-the-onset-of-the-pandemic.html |journal=Intereconomics |language=en |volume=2022 |issue=2 |pages=69–75}}{{Cite journal |last1=Van Doorslaer |first1=Hielke |last2=Vermeiren |first2=Mattias |date=2021-09-03 |title=Pushing on a String: Monetary Policy, Growth Models and the Persistence of Low Inflation in Advanced Capitalism |url=https://www.tandfonline.com/doi/full/10.1080/13563467.2020.1858774 |journal=New Political Economy |language=en |volume=26 |issue=5 |pages=797–816 |doi=10.1080/13563467.2020.1858774 |issn=1356-3467 |s2cid=230588698|url-access=subscription }}

Analysis published in June 2023 by the Bureau of Labor Statistics found that from February 2020 through May 2023, gasoline retailing profit margins had increased 62%.{{cite news |last1=Newman |first1=Rick |title=High profit margins on gasoline are costing drivers more |url=https://finance.yahoo.com/news/high-profit-margins-on-gasoline-are-costing-drivers-more-201841925.html |publisher=Yahoo Finance |date=July 25, 2023}}

An analysis published in early 2024 by the White House Council of Economic Advisers found that grocery and beverage retailers had increased their margins by nearly two percentage points since the eve of the pandemic, to the highest level in two decades. The analysis found that grocer margins had remained elevated as the inflation surge eased, though margins for other types of retailers had fallen back to historical levels. President Joe Biden and others asserted that shrinkflation, a practice of reducing portion or quantity sizes of packaged foods while maintaining the same price, was keeping profit margins higher than usual.{{cite news |last1=Tankersley |first1=Jim |title=Biden Takes Aim at Grocery Chains Over Food Prices |url=https://www.nytimes.com/2024/02/01/us/politics/biden-food-prices.html |work=The New York Times |date=February 1, 2024}}{{cite news |title=The costly economic trend here to stay |url=https://www.bbc.com/worklife/article/20230922-shrinkflation-isnt-a-trend-its-a-permanent-hit-to-your-wallet |publisher=BBC |date=September 24, 2023}}{{cite news |last1=Kaplan |first1=Juliana |title=The 10 products that have shrunk the most under shrinkflation |url=https://www.businessinsider.com/inflation-groceries-toilet-paper-shrinkflation-smaller-packages-same-price-2023-12?r=US&IR=T#:~:text=If%20you%20feel%20like%20you,the%20most%20as%20inflation%20rose. |work=Business Insider |date=December 17, 2023}}

The Federal Trade Commission released a report in March 2024 finding that large grocery retailers "accelerated and distorted" the effects of supply chain disruptions to protect their profits. The analysis found that some large retailers "seem to have used rising costs as an opportunity to further hike prices to increase their profits, and profits remain elevated even as supply chain pressures have eased." The study found some large retailers sought to gain an advantage over smaller competitors by threatening suppliers with large fines if strict delivery requirements were not met, and that in some cases "suppliers preferentially allocated product to the purchasers threatening to fine them." Some suppliers, however, were already contractually bound to supply other retailers. FTC chair Lina Khan said "dominant firms used this moment to come out ahead at the expense of their competitors and the communities they serve." Although the pace of grocery price increases had abated since the 2022 surge, prices had not since fallen overall by 2024. Retailers have said they planned smaller price increases in 2024 as consumers had begun to push back against high prices, causing some retailers to lose sales. The FTC also objected to continued elevated profit margins as evidence that there was not enough competition in the grocery sector. The FTC and several state attorneys general in February 2024 sued to block a proposed $25 billion merger between large grocery chains Kroger and Albertsons, arguing the deal would reduce competition and likely lead to higher consumer prices.{{cite news |last1=Ngo |first1=Madeleine |title=Large Grocers Took Advantage of Pandemic Supply Chain Disruptions, F.T.C. Finds |url=https://www.nytimes.com/2024/03/21/us/politics/grocery-prices-pandemic-ftc.html |work=The New York Times |date=March 21, 2024}} Kroger's top pricing executive wrote in a March 2024 internal email, "On milk and eggs, retail inflation has been significantly higher than cost inflation."{{cite news |last1=Nylen |first1=Leah |title=Kroger Egg Pricing Turns Merger Trial Into Inflation Fight |url=https://finance.yahoo.com/news/kroger-hiked-milk-egg-prices-205327114.html |publisher=Yahoo Finance |date=August 27, 2024}}

In the United States, higher motor vehicle prices were a significant contributor to the inflation surge. An analysis published in May 2023 by The New York Times found that auto manufacturers and dealers shifted from a high volume-low margin business model before the pandemic to a low volume-high margin model after the pandemic. Manufacturers emphasized higher-margin luxury vehicles, while dealers increased their markups over manufacturer list prices. A study published by the Bureau of Labor Statistics, the agency that tracks consumer prices, found that dealer markups accounted for 35% to 62% of new vehicle inflation from 2019 to 2022. Paul Ryan, the CEO of a shopping app that monitors prices across about 40,000 dealerships, remarked, "it was the best of times for car dealers, for sure."{{cite news |title=Why Is Inflation So Stubborn? Cars Are Part of the Answer. |url=https://www.nytimes.com/2023/05/20/business/economy/car-prices-inflation.html |work=The New York Times |date=May 20, 2023|author1=Lydia DePillis|author2=Jeanna Smialek}} Isabella Weber argues that the shortage of chips gave existing producers a 'temporary monopoly' where they did not have to worry about new entrants, allowing them to raise prices.{{Cite magazine |last=Carter |first=Zachary |date=2023-06-06 |title=What if We're Thinking About Inflation All Wrong? |url=https://www.newyorker.com/news/persons-of-interest/what-if-were-thinking-about-inflation-all-wrong |access-date=2024-08-29 |magazine=The New Yorker |language=en-US |issn=0028-792X}}

{{See also|Economic impact of the COVID-19 pandemic}}

A debate arose among economists early in 2021 as to whether inflation was a transitory effect of the world's emergence from the pandemic, or whether it would be persistent. Economists Larry Summers and Olivier Blanchard warned of persistent inflation, while Paul Krugman and U.S. Treasury Secretary Janet Yellen argued it would be transitory.{{cite news|url=https://www.nytimes.com/2021/12/16/opinion/inflation-economy-2021.html|title=The Year of Inflation Infamy|author=Paul Krugman|work=The New York Times|date=December 16, 2021 }} Inflation continued to accelerate during 2021 and into 2022. In response, the Federal Reserve increased the fed funds rate by 25 basis points in March 2022, the first increase in three years, followed by 50 basis points in May, then a succession of four 75 basis point hikes in each of June, July, September, and November. Some analysts considered these increases late and dramatic, arguing they might induce a recession.{{cite news |last1=Cox |first1=Jeff |title=Bernanke says the Fed's slow response to inflation 'was a mistake' |url=https://www.cnbc.com/2022/05/16/bernanke-says-the-feds-slow-response-to-inflation-was-a-mistake.html |publisher=CNBC |date=May 16, 2022}}{{cite news |title=How the Fed's rate hikes slow the economy — and impact you |url=https://www.washingtonpost.com/business/interactive/2022/fed-rate-hikes-economy/ |newspaper=The Washington Post |date=November 2, 2022|author1=Rachel Siegel|author2=Emily Wright}} The combined moves put the fed funds rate at its highest level since the onset of the Great Recession in early 2008.{{cite news |last1=Timiraos |first1=Nick |title=Fed Approves Fourth 0.75-Point Rate Rise, Hints at Smaller Hikes |url=https://www.wsj.com/articles/fed-approves-fourth-0-75-point-rate-rise-hints-at-smaller-hikes-11667412242 |work=The Wall Street Journal |date=November 2, 2022}}{{cite news |last1=Smialek |first1=Jeanna |title=The Fed raises rates by three-quarters of a percentage point. |url=https://www.nytimes.com/live/2022/07/27/business/fed-interest-rates#after-another-rate-increase-big-questions-remain-about-what-comes-next |work=The New York Times |date=July 27, 2022}} Inflation in the Eurozone hit a record high of 8.1% in May, prompting the European Central Bank to announce that it would raise rates in July by 25 basis points, the first increase in eleven years, and again in September by 50 basis points. By November it had increased rates by a cumulative 200 basis points.{{cite news |last1=Amaro |first1=Silvia |title=European Central Bank surprises markets with larger-than-expected rate hike, its first in 11 years |url=https://www.cnbc.com/2022/07/21/european-central-bank-raises-rates-by-50-basis-points-its-first-hike-in-11-years.html |publisher=CNBC |date=July 21, 2022}}{{cite news |title=ECB must keep raising rates even if recession risks rise, Lagarde says |url=https://www.reuters.com/markets/europe/ecb-must-keep-raising-rates-even-if-recession-risks-rise-lagarde-says-2022-11-01/ |publisher=Reuters |date=November 1, 2022}} After the Fed's third rate increase, Summers said "We are still headed for a pretty hard landing."Multiple sources:

• {{Cite web |last=Cox |first=Jeff |date=March 16, 2022 |title=Federal Reserve approves first interest rate hike in more than three years, sees six more ahead |url=https://www.cnbc.com/2022/03/16/federal-reserve-meeting.html |url-status=live |archive-url=https://web.archive.org/web/20220616022033/https://www.cnbc.com/2022/03/16/federal-reserve-meeting.html |archive-date=June 16, 2022 |website=CNBC}}
• {{Cite web|url=https://www.cnbc.com/2022/05/04/fed-raises-rates-by-half-a-percentage-point-the-biggest-hike-in-two-decades-to-fight-inflation.html|title=Fed raises rates by half a percentage point — the biggest hike in two decades — to fight inflation|first=Jeff|last=Cox|date=May 4, 2022|website=CNBC|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105125/https://www.cnbc.com/2022/05/04/fed-raises-rates-by-half-a-percentage-point-the-biggest-hike-in-two-decades-to-fight-inflation.html|url-status=live}}
• {{Cite web|url=https://www.cnbc.com/2022/06/15/fed-hikes-its-benchmark-interest-rate-by-three-quarters-of-a-point-the-biggest-increase-since-1994.html|title=Fed hikes its benchmark interest rate by 0.75 percentage point, the biggest increase since 1994|first=Jeff|last=Cox|date=June 15, 2022|website=CNBC|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105126/https://www.cnbc.com/2022/06/15/fed-hikes-its-benchmark-interest-rate-by-three-quarters-of-a-point-the-biggest-increase-since-1994.html|url-status=live}}
• {{Cite web|url=https://www.ft.com/content/62ef08f8-107e-4e80-b972-f624d7e1836e|title=Betting on transitory US inflation is still valid|work=Financial Times|author=Megan Greene|date=January 7, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105126/https://www.ft.com/content/62ef08f8-107e-4e80-b972-f624d7e1836e|url-status=live}}
• {{Cite web|url=https://www.barrons.com/articles/larry-summers-economy-fed-hard-landing-inflation-recession-51655402216|title='We Are Still Headed for a Pretty Hard Landing,' Ex-Treasury Secretary Larry Summers Says|first=Lisa|last=Beilfuss|work=Barron's|date=June 17, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105255/https://www.barrons.com/articles/larry-summers-economy-fed-hard-landing-inflation-recession-51655402216|url-status=live}}
• {{Cite web|url=https://www.politico.com/news/2022/06/17/clearly-behind-the-curve-ceos-sour-on-powell-over-rate-hikes-00040254|title=Inflation's main culprit? CEOs zero in on Powell's Fed|work=Politico|author=Ben White|date=June 17, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619105126/https://www.politico.com/news/2022/06/17/clearly-behind-the-curve-ceos-sour-on-powell-over-rate-hikes-00040254|url-status=live}}
• {{cite news|title=Europe's central bank to hike rates in July, 1st in 11 years|url=https://apnews.com/article/russia-ukraine-covid-politics-health-10bdb0c93b5a45d3cd51c76091997c62|publisher=Associated Press|date=June 9, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619115425/https://apnews.com/article/russia-ukraine-covid-politics-health-10bdb0c93b5a45d3cd51c76091997c62|url-status=live}}
• {{cite news|last1=Collinson|first1=Stephen|title=Yellen's words on inflation won't end America's price hikes|url=https://edition.cnn.com/2022/06/01/politics/yellen-biden-inflation-2022-midterms-analysis/index.html|publisher=CNN|date=June 1, 2022|archive-date=June 19, 2022|archive-url=https://web.archive.org/web/20220619132425/https://edition.cnn.com/2022/06/01/politics/yellen-biden-inflation-2022-midterms-analysis/index.html|url-status=live}} By November 2022, the inflation rate in the United States had declined five months straight while job creation remained strong and third quarter real GDP growth was 3.2% on strong consumer spending, leading a growing number of investors to conclude a hard landing might be averted.{{cite news |last1=Wallace |first1=Alicia |title=Inflation cooled more than expected in November |url=https://www.cnn.com/2022/12/13/economy/cpi-inflation-report-november/index.html |publisher=CNN|date=December 13, 2022}}{{cite news |title=U.S. Job Growth Remains Strong, Defying Fed's Rate Strategy |url=https://www.nytimes.com/2022/12/02/business/economy/jobs-report-november.html |work=The New York TImes |date=December 2, 2022|author=Lydia DePhillis}}{{cite news |title=The US economy grew much faster than previously thought in the third quarter |url=https://www.cnn.com/2022/12/22/economy/gdp-third-quarter-final/index.html |publisher=CNN |date=December 22, 2022|author1=Chris Isidore|author2=Alicia Wallace}}{{cite news |last1=Otani |first1=Akane |title=Investors Grow More Confident Fed Will Pull Off a Soft Landing |url=https://www.wsj.com/articles/investors-grow-more-confident-fed-will-pull-off-a-soft-landing-11670704543 |work=The Wall Street Journal |date=December 11, 2022|quote=A few months ago, Wall Street rebuffed the idea that the Federal Reserve would be able to pull off a soft landing. Now, a growing crowd is betting on exactly that happening. Mutual funds and hedge funds managing roughly $4.8 trillion in assets have been putting money into stocks that stand to benefit from inflation cooling, interest rates going down, and the U.S. economy avoiding a recession, according to an analysis by Goldman Sachs Group Inc.}}

{{Main|Economic impact of the Russian invasion of Ukraine}}

Mark Zandi, chief economist of Moody's Analytics, analyzed United States Consumer Price Index components following the May 2022 report that showed an 8.6% inflation rate in the U.S. He found that by then the 2022 Russian invasion of Ukraine was the principal cause of higher inflation, comprising 3.5% of the 8.6%. He said oil and commodities prices jumped in anticipation of and response to the invasion, leading to higher gasoline prices. The resulting higher diesel prices led to higher transportation costs for consumer goods, notably food.{{Cite news |last=Mui |first=Christine |date=June 13, 2022 |title=Top economist Mark Zandi says forget Biden's stimulus—Putin's war in Ukraine is by far the biggest driver of inflation |work=Fortune |url=https://fortune.com/2022/06/13/mark-zandi-moodys-chief-economist-inflation-russia-invasion-ukraine/ |url-status=live |archive-url=https://web.archive.org/web/20220615003113/https://fortune.com/2022/06/13/mark-zandi-moodys-chief-economist-inflation-russia-invasion-ukraine/ |archive-date=June 15, 2022}} Gernot Wagner argued that most of inflation was caused by the invasion.{{Cite news |last=Wagner |first=Gernot |date=2022-08-12 |title=Opinion {{!}} Greening Your Home Will Be Cheaper, but Expect Growing Pains |url=https://www.nytimes.com/2022/08/12/opinion/environment/climate-bill-house-inflation-reduction.html |access-date=2024-08-18 |work=The New York Times |language=en-US |issn=0362-4331}}{{Cite web |last=Wagner |first=Gernot |date=February 23, 2024 |title=The Ukraine War Blew Up the World's Energy Economy |url=https://heatmap.news/economy/ukraine-war-global-energy |access-date=2024-08-18 |website=heatmap.news |language=en |quote=Throughout the most recent U.S. spike in inflation in 2022, the energy category alone was responsible for around half of total inflation. And that’s just counting the direct effects. Indirectly, a good portion of the food price increases ever since are also due to higher energy costs. If the farmer pays more to harvest the crop, soon those commodity prices increase as well. Of course, it isn’t all fossil fuels...The IRA has not and will not cut inflation overnight. But that fight is indeed a big part of the bill’s legacy: Play the long game of tackling all three types of climate-related inflation — fossilflation, climateflation, and greenflation — at their very core, and indeed justify the law’s name.}}

Russian gas supply curbs, which began in 2021, aggravated energy crunch caused by demand growth and global supply limitations during the post-pandemic restrictions recovery. In Europe, gas prices increased by more than 450%, and electricity by 230% in less than a year.{{cite news |author1=Liboreiro, Jorge |author2=de Filippi, Alberto |title=Why Europe's energy prices are soaring and could get much worse |url=https://www.euronews.com/my-europe/2021/10/28/why-europe-s-energy-prices-are-soaring-and-could-get-much-worse |work=Euronews |date=2021-10-28}} On February 22, 2022, before the Russian invasion, the German Government froze the Nord Stream 2 pipeline between Russia and Germany,{{Cite news |last1=Marsh |first1=Sarah |last2=Chambers |first2=Madeline |date=February 22, 2022 |title=Germany freezes Nord Stream 2 gas project as Ukraine crisis deepens |language=en |work=Reuters |url=https://www.reuters.com/business/energy/germanys-scholz-halts-nord-stream-2-certification-2022-02-22/ |url-status=live |archive-url=https://web.archive.org/web/20220429201331/https://www.reuters.com/business/energy/germanys-scholz-halts-nord-stream-2-certification-2022-02-22/ |archive-date=April 29, 2022}} causing natural gas prices to rise significantly.{{Cite web |title=Natural Gas PRICE Today {{!}} Natural Gas Spot Price Chart {{!}} Live Price of Natural Gas per Ounce |url=https://markets.businessinsider.com/commodities/natural-gas-price |url-status=live |archive-url=https://web.archive.org/web/20220502210727/https://markets.businessinsider.com/commodities/natural-gas-price |archive-date=May 2, 2022 |website=Markets Insider |language=en}}

On February 24, Russian military forces invaded Ukraine{{Cite news |date=February 22, 2022 |title=Ukraine crisis: Russia orders troops into rebel-held regions |language=en-GB |work=BBC News |url=https://www.bbc.com/news/world-europe-60468237 |url-status=live |archive-url=https://web.archive.org/web/20220224151156/https://www.bbc.com/news/world-europe-60468237 |archive-date=February 24, 2022}} to overthrow the democratically elected government, and replace it with a Russian puppet government.{{Cite web |last=Kudlenko |first=Anastasiia |title=Ukraine: Putin's desire to install a puppet government draws from the Bolshevik playbook |url=http://theconversation.com/ukraine-putins-desire-to-install-a-puppet-government-draws-from-the-bolshevik-playbook-178060 |url-status=live |archive-url=https://web.archive.org/web/20220408074753/https://theconversation.com/ukraine-putins-desire-to-install-a-puppet-government-draws-from-the-bolshevik-playbook-178060 |archive-date=April 8, 2022 |website=The Conversation |date=February 28, 2022 |language=en}} Before the invasion, Ukraine accounted for 11.5% of the world's wheat crop market, and contributed 17% of the world's corn crop export market, and the invasion caused wheat and corn from Ukraine unable to reach international market, causing shortages, and result in dramatic rise in prices,{{Cite web |publisher=Deutsche Welle |title=Ukraine war increases global food insecurity |date=March 21, 2022 |url=https://www.dw.com/en/ukraine-war-increases-global-food-insecurity/a-61206423 |url-status=live |archive-url=https://web.archive.org/web/20220502210727/https://www.dw.com/en/ukraine-war-increases-global-food-insecurity/a-61206423 |archive-date=May 2, 2022 |website=DW.COM |language=en-GB}} that exacerbated to foodstuffs and biodiesel prices.{{Cite news |date=March 5, 2022 |title=Food prices jump 20.7% yr/yr to hit record high in Feb, U.N. agency says |language=en |work=Reuters |url=https://www.reuters.com/world/food-prices-hit-record-high-february-un-agency-says-2022-03-04/ |url-status=live |archive-url=https://web.archive.org/web/20220601043305/https://www.reuters.com/world/food-prices-hit-record-high-february-un-agency-says-2022-03-04/ |archive-date=June 1, 2022}}{{Cite web |date=February 19, 2015 |title=Biodiesel prices (SME & FAME) |url=https://www.neste.com/investors/market-data/biodiesel-prices-sme-fame |url-status=live |archive-url=https://web.archive.org/web/20220401175407/https://www.neste.com/investors/market-data/biodiesel-prices-sme-fame |archive-date=April 1, 2022 |website=Neste worldwide |language=en}} Additionally, the price of Brent Crude Oil per barrel rose from $97.93 on February 25 to a high of $127.98 on March 8,{{Cite web |title=Crude Oil Price Today {{!}} Brent Oil Price Chart {{!}} Oil Price Per Barrel |url=https://markets.businessinsider.com/commodities/oil-price |url-status=live |archive-url=https://web.archive.org/web/20220502043632/https://markets.businessinsider.com/commodities/oil-price |archive-date=May 2, 2022 |website=markets.businessinsider.com |language=en}} this caused petrochemicals and other goods reliant on crude oil to rise in price as well.{{Cite web |last=Dolar |first=Veronika |title=Soaring crude prices make the cost of pretty much everything else go up too because we almost literally eat oil |url=http://theconversation.com/soaring-crude-prices-make-the-cost-of-pretty-much-everything-else-go-up-too-because-we-almost-literally-eat-oil-179809 |url-status=live |archive-url=https://web.archive.org/web/20220502210731/https://theconversation.com/soaring-crude-prices-make-the-cost-of-pretty-much-everything-else-go-up-too-because-we-almost-literally-eat-oil-179809 |archive-date=May 2, 2022 |website=The Conversation |date=March 28, 2022 |language=en}}{{Cite web |title=Petrochemical prices expected to keep rising |url=https://globuc.com/news/petrochemical-prices-to-rise/ |url-status=live |archive-url=https://web.archive.org/web/20220716153002/https://globuc.com/news/petrochemical-prices-to-rise/ |archive-date=July 16, 2022 |website=Globuc |language=en}}

The effect of sanctions on the Russian economy caused annual inflation in Russia to rise to 17.89%, its highest since 2002.{{Cite news |date=April 13, 2022 |title=Inflation in Russia hits highest in more than 20 years |language=en |work=Reuters |url=https://www.reuters.com/world/europe/inflation-russia-hits-highest-more-than-20-years-2022-04-13/ |url-status=live |archive-url=https://web.archive.org/web/20220502210727/https://www.reuters.com/world/europe/inflation-russia-hits-highest-more-than-20-years-2022-04-13/ |archive-date=May 2, 2022}} Weekly inflation hit a high of 0.99% in the week of April 8, bringing YTD inflation in Russia to 10.83%, compared to 2.72% in the same period of 2021.

{{See also|List of countries by inflation rate|List of sovereign states by central bank interest rates}}

While most countries saw a rise in their annual inflation rate during 2021 and 2022, some of the highest rates of increase have been in Europe, Brazil, Turkey and the United States.{{Cite web |last=DeSilver |first=Drew |date=November 24, 2021 |title=Inflation has risen around the world, but the U.S. has seen one of the biggest increases |url=https://www.pewresearch.org/fact-tank/2021/11/24/inflation-has-risen-around-the-world-but-the-u-s-has-seen-one-of-the-biggest-increases/ |url-status=live |archive-url=https://web.archive.org/web/20211229193928/https://www.pewresearch.org/fact-tank/2021/11/24/inflation-has-risen-around-the-world-but-the-u-s-has-seen-one-of-the-biggest-increases/ |archive-date=December 29, 2021 |publisher=Pew Research Center}}{{Cite web |date=May 31, 2022 |title=Eurozone inflation hits record 8.1% amid rising energy costs |url=https://apnews.com/article/russia-ukraine-european-union-inflation-bd5e9345f5da5d44d78c612a6b9c0008 |url-status=live |archive-url=https://web.archive.org/web/20220619123025/https://apnews.com/article/russia-ukraine-european-union-inflation-bd5e9345f5da5d44d78c612a6b9c0008 |archive-date=June 19, 2022 |website=Associated Press}} By June 2022, nearly half of Eurozone countries had double-digit inflation, and the region reached an average inflation rate of 8.6%, the highest since its formation in 1999.{{Cite news |last=Eddy |first=Melissa |date=July 1, 2022 |title=Eurozone inflation rises to 8.6 percent, the highest ever, driven by high energy prices |work=The New York Times |url=https://www.nytimes.com/2022/07/01/business/eurozone-inflation-june.html |url-status=live |archive-url=https://web.archive.org/web/20220701125637/https://www.nytimes.com/2022/07/01/business/eurozone-inflation-june.html?referringSource=articleShare |archive-date=July 1, 2022}} In response, at least 75 central banks around the world have aggressively increased interest rates.{{cite web |url=https://www.nytimes.com/2022/07/17/business/economy/global-central-banks-inflation.html |title=Global Central Banks Ramp Up Inflation Fight |last1=Smialek |first1=Jeanna |last2=Nelson |first2=Eshe |date=July 17, 2022 |work=The New York Times |access-date=July 18, 2022 }} However, the World Bank warns that combating inflation with rate hikes has increased the risk of a global recession.{{cite news |author= |date=2022-09-15 |title=World Bank sees rising risk of global recession in 2023 |url=https://www.reuters.com/markets/rates-bonds/world-bank-sees-rising-risk-global-recession-2023-2022-09-15/ |work=Reuters |access-date=2022-09-16 |df=dmy-all}}{{cite report |last1=Guénette |first1=Justin-Damien |last2=Kose |first2=M. Ayhan |last3=Sugawara |first3=Naotaka |date=2022-09-15 |title=Is a Global Recession Imminent? |url=https://openknowledge.worldbank.org/bitstream/handle/10986/38019/Global-Recession.pdf |publisher=World Bank |access-date=2022-09-16 |df=dmy-all}}

{{See also|Turkish economic crisis (2018–current)}}

Countries in North Africa were disproportionally affected by inflation. Tunisia went through a crisis triggered by soaring energy prices and unprecedented inflation of foods in 2022. Moroccan household finances also were negatively affected by imported inflation. Annual inflation rates in North African countries rose to 15.3 percent compared to 6.4 percent in 2021, according to the Central Agency for Public Mobilization and Statistics.[https://northafricapost.com/60583-world-bank-tunisias-trade-deficit-continues-to-widen-amid-soaring-inflation.html "World Bank: Tunisia's trade deficit continues to widen amid soaring inflation"]. northafricapost.com. Retrieved 12 September 2022.[https://www.reuters.com/article/morocco-inflation/moroccan-household-finances-hit-by-imported-inflation-planning-agency-idUSKBN2JS0ZO "Moroccan household finances hit by imported inflation – planning agency"] Reuters.

Retrieved 12 September 2022.[https://www.arabnews.com/node/2158786/amp "Egypt's inflation hits 4-year high amid surge in food prices"] arabnews. Retrieved 12 September 2022.

In some North African countries, the inflation surge has encouraged hoarding practices by consumers. Price increases for basic food staples, such as coffee, were particularly high in parts of Asia and North Africa, where people spend a higher proportion of income on food and fuel than in the United States and Europe. Food producers of Nestlé's Middle East and North Africa (MENA) unit have noticed the stock-piling of non-perishable items, as a reaction to the surging inflation. Karim Al Bitar, head of consumer research and market intelligence at MENA, said that the company is considering making some products "more affordable" to consumers.[https://www.reuters.com/business/retail-consumer/nestle-adapts-hoarding-picks-up-asia-north-africa-2022-09-21/ "Nestle adapts as hoarding picks up in Asia, North Africa"] Reuters Business Unit. Retrieved 20 September 2022.

In Turkey, retail prices rose 9.65% in December compared to November, for an annual rate of 34%. Some of the largest increases were for electricity, natural gas, and gasoline. The economy was further strained by a currency crisis caused by a series of rate cuts by the central bank; the Turkish lira lost 44% of its value against the dollar in 2021.{{Cite news |date=January 1, 2022 |title=Turkey hikes energy prices; Istanbul monthly inflation highest in decade |work=WTVB |url=https://wtvbam.com/2022/01/01/turkey-hikes-energy-prices-istanbul-monthly-inflation-highest-in-decade/ |url-status=live |archive-url=https://web.archive.org/web/20220101193412/https://wtvbam.com/2022/01/01/turkey-hikes-energy-prices-istanbul-monthly-inflation-highest-in-decade/ |archive-date=January 1, 2022}} By August 2022, Turkey's inflation rate was 80.21%.{{Cite web|url=https://www.statista.com/statistics/895080/turkey-inflation-rate/|title=Turkey Inflation Rate|website=Statista}}

According to the IMF, median inflation approached 9% in August. Rising prices of food and "tradable goods like household products" have contributed most to this increase.[https://www.weforum.org/agenda/2022/10/inflation-sub-saharan-africa-economy-challenge/ "Why inflation is one of Africa's most pressing challenges - and how to tackle it"] World Economic Forum blog. Retrieved 1 November 2022.

{{See also|2023 United States banking crisis}}

File:Inflation 2018-2024 US vs. EuroZone.png in the US, gray column marks start of COVID in US{{Cite web |title=Harmonized Index of Consumer Prices: All Items for Euro area (19 countries) {{!}} FRED {{!}} St. Louis Fed |url=https://fred.stlouisfed.org/graph/?g=1vtN6 |access-date=2024-10-10 |website=fred.stlouisfed.org}} (2018-2024)]]

[[File:Housing prices inflation.webp|thumb|300px|right|Housing prices inflation from Q4 2020 to Q4 2021 in the United States

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]]In the United States, price increases for gasoline, food, and housing drove inflation in 2021.{{Cite news |last=Aratani |first=Lauren |date=December 10, 2021 |title=US inflation rate rose to 6.8% in 2021, its highest since 1982 |work=The Guardian |url=https://www.theguardian.com/business/2021/dec/10/us-inflation-rate-rise-2021-highest-increase-since-1982 |url-status=live |archive-url=https://web.archive.org/web/20220103152533/https://www.theguardian.com/business/2021/dec/10/us-inflation-rate-rise-2021-highest-increase-since-1982 |archive-date=January 3, 2022}} Higher energy costs caused the inflation to rise further in 2022,{{Cite web |last=Tan |first=Su-Lin |date=July 14, 2022 |title=Yellen warns inflation in the U.S. is 'unacceptably high' |url=https://www.cnbc.com/2022/07/14/yellen-warns-inflation-in-the-us-is-unacceptably-high.html |url-status=live |archive-url=https://web.archive.org/web/20220715024523/https://www.cnbc.com/2022/07/14/yellen-warns-inflation-in-the-us-is-unacceptably-high.html |archive-date=July 15, 2022 |publisher=CNBC |quote=Almost half of the increase in prices in the latest inflation numbers came from high energy costs, Yellen added. }} peaking at 9.1%, a high not seen since 1981.{{Cite web |last=Cox |first=Jeff |date=July 13, 2022 |title=Inflation rose 9.1% in June, even more than expected, as consumer pressures intensify |url=https://www.cnbc.com/2022/07/13/inflation-rose-9point1percent-in-june-even-more-than-expected-as-price-pressures-intensify.html |url-status=live |archive-url=https://web.archive.org/web/20220715000930/https://www.cnbc.com/2022/07/13/inflation-rose-9point1percent-in-june-even-more-than-expected-as-price-pressures-intensify.html |archive-date=July 15, 2022 |publisher=CNBC }} The housing shortage has been cited as a major factor in inflation in the US, with Katy O'Donnell of Politico arguing that housing shortages were the single biggest contributor to inflation. Reuters noted how shelter costs or 'shelter inflation' surged during the pandemic.

In July 2022, the Fed increased the interest rate for the third time in the year,{{Cite news |date=June 15, 2022 |title=US makes biggest interest rate rise in almost 30 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-61804877 |access-date=July 22, 2022}} yet inflation remained high outpacing the growth in wages{{Cite news |last=Harrison |first=David |date=May 6, 2022 |title=Pay Raises Are Historically High. Inflation Is Still Eclipsing Those Gains. |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/inflation-eclipses-aprils-historically-strong-wage-gains-11651854549 |access-date=July 22, 2022 |issn=0099-9660}} and spending.{{Cite news |last=Dougherty |first=Danny |date=July 17, 2022 |title=Inflation Has Outpaced Wage Growth. Now It's Cutting Into Spending. |language=en-US |work=The Wall Street Journal |url=https://www.wsj.com/articles/inflation-has-outpaced-wage-growth-now-its-cutting-into-spending-11658050200 |access-date=July 22, 2022 |issn=0099-9660}} According to the Economic Policy Institute the minimum wage was worth less than any time since 1956 due to inflation.{{Cite web |last=Konish |first=Lorie |date=July 15, 2022 |title=High inflation leads federal minimum wage to reach lowest value since 1956, report finds |url=https://www.cnbc.com/2022/07/15/inflation-leads-federal-minimum-wage-to-reach-lowest-value-since-1956.html |access-date=July 22, 2022 |website=CNBC |language=en}}{{Cite web |title=The value of the federal minimum wage is at its lowest point in 66 years |url=https://www.epi.org/blog/the-value-of-the-federal-minimum-wage-is-at-its-lowest-point-in-66-years/ |access-date=July 22, 2022 |website=Economic Policy Institute |language=en-US}}

Nevertheless, the hikes were seen as faster and sooner than the response by the European Central Bank, so while the euro fell, the dollar remained relatively strong, helping it to be the more valuable currency for the first time in 20 years.{{Cite news |date=July 13, 2022 |title=Euro falls below dollar for first time in 20 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62153251 |access-date=July 22, 2022}}{{Cite news |date=July 21, 2022 |title=Eurozone raises interest rates for first time in 11 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62240730 |access-date=July 22, 2022}} On July 27, the Fed announced a fourth rate rise by 0.75 points, bringing the rate to a range between 2.25% and 2.5%; although an expected move to combat the inflation, the rise has been seen more cautiously as there are signs that the economy is entering a recession, which the rate rises could potentially aggravate.{{Cite web |title=Federal Reserve issues FOMC statement |url=https://www.federalreserve.gov/newsevents/pressreleases/monetary20220727a.htm |access-date=August 3, 2022 |website=Board of Governors of the Federal Reserve System |language=en}}{{Cite news |date=July 27, 2022 |title=US makes huge interest rate rise to tame soaring prices |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62310354 |access-date=August 3, 2022}}{{Cite news |title=Fed to Inflict More Pain on Economy as It Readies Big Rate Hike |url=https://www.bloomberg.com/news/articles/2022-07-24/fed-to-inflict-more-pain-on-economy-as-it-readies-big-rate-hike |access-date=August 3, 2022 |newspaper=Bloomberg|date=July 24, 2022 }} On July 28, data from the BEA showed that the economy shrunk for the second quarter in a row, which is commonly used to define a recession.{{Cite web |title=Gross Domestic Product, Second Quarter 2022 (Advance Estimate) {{!}} U.S. Bureau of Economic Analysis (BEA) |url=https://www.bea.gov/news/2022/gross-domestic-product-second-quarter-2022-advance-estimate |access-date=August 3, 2022 |website=www.bea.gov}}{{Cite news |date=July 28, 2022 |title=US economy shrinks again sparking recession fears |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62310355 |access-date=August 3, 2022}}{{Cite news |date=May 5, 2008 |title=The risk of redefining recession |url=https://money.cnn.com/2008/05/05/news/economy/recession/ |access-date=August 3, 2022}} BLS data showed that inflation eased on July to 8.5%{{Cite news |date=August 10, 2022 |title=US inflation eases in July as petrol prices drop |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62482143 |access-date=August 14, 2022}}{{Cite news |date=August 10, 2022 |title=US Inflation Runs Cooler Than Forecast, Easing Pressure on Fed |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-08-10/us-inflation-decelerates-more-than-forecast-on-gas-price-drop |access-date=August 14, 2022}} from the 40-year peak reached in June at 8.9%.{{Cite news |date=July 13, 2022 |title=US prices rising at fastest rate for 40 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62148662 |access-date=August 14, 2022}} Annual inflation increased to 8.3% in August 2022, in part due to rising grocery prices.{{Cite web |last=Boehm |first=Eric |date=September 13, 2022 |title=Rising Grocery Prices Pushed Annual Inflation to 8.3 Percent in August|url=https://reason.com/2022/09/13/rising-grocery-prices-pushed-annual-inflation-to-8-3-percent-in-august/}} In September, the Fed increased the interest for a fifth time in the year reaching a 14-year high.{{Cite news |date=2022-09-21 |title=Fed rate hike: US interest rates hit 14-year high in inflation battle |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62973376 |access-date=2022-09-26}} In November 2022, the year-over-year inflation rate was 7.1%, the lowest it has been since December 2021 but still much higher than average.{{Cite news |date=December 13, 2022 |title=Inflation Cools to 7.1 Percent, but Still Has a Long Way To Fall |url=https://reason.com/2022/12/13/inflation-cools-to-7-1-percent-but-still-has-a-long-way-to-fall/}}

Inflation is believed to have played a major role in a decline in the approval rating of President Joe Biden, who took office in January 2021, being net negative starting in October of that year.{{Cite news |last=Enten |first=Harry |date=December 21, 2021 |title=Biden's economic ratings are worse than Carter's |work=CNN |url=https://www.cnn.com/2021/12/21/politics/joe-biden-jimmy-carter-economic-ratings/index.html |url-status=live |archive-url=https://web.archive.org/web/20211225065557/https://www.cnn.com/2021/12/21/politics/joe-biden-jimmy-carter-economic-ratings/index.html |archive-date=December 25, 2021}} Many Republicans have blamed stimulus spending by Biden and fellow Democrats for fueling the surge; economists argue that the government's COVID stimulus during 2020 under Trump, as well as the Federal reserve's inactions, and more stimulus under Biden, started the 2021 inflation spike.{{ r | NYT_2023-03-23 }} In March 2023, Federal Reserve chairman Jerome Powell said that currently the primary drivers of inflation are supply chain problems, consumers' change to purchases of goods rather than services, and the tight labor market.{{cite news |last1=Tankersley |first1=Jim |title=Republicans Say Spending Is Fueling Inflation. The Fed Chair Disagrees. |url=https://www.nytimes.com/2023/03/23/us/politics/republicans-inflation-federal-reserve-powell.html |work=The New York Times |date=March 23, 2023 | quote=“You have to look at the fiscal impulse from spending,” Mr. Powell said on Wednesday, referring to a measure of how much tax and spending policies are adding or subtracting to economic growth. “Fiscal impulse is actually not what’s driving inflation right now. It was at the beginning perhaps, but that’s not the story right now.” Instead, Mr. Powell — along with Mr. Biden and his advisers — says rapid price growth is primarily being driven by factors like snarled supply chains, an oil shock following Russia’s invasion of Ukraine and a shift among American consumers from spending money on services like travel and dining out to goods like furniture. Mr. Powell has also said the low unemployment rate was playing a role: “Some part of the high inflation that we’re experiencing is very likely related to an extremely tight labor market,” he told a House committee earlier this month. ... Economists generally agree that those stimulus efforts — carried out by the Fed, by Mr. Biden and in trillions of dollars of pandemic spending signed by Mr. Trump in 2020 — helped push the inflation rate to its highest level in 40 years last year. But researchers disagree on how large that effect was, and over how to divide the blame between federal government stimulus and Fed stimulus.}}{{Cite news |last=Guida |first=Victoria |date=December 9, 2021 |title=Another eye-popping inflation reading is ahead. Next year could look very different. |work=Politico |url=https://www.politico.com/news/2021/12/09/biden-inflation-next-year-523984 |url-status=live |archive-url=https://web.archive.org/web/20211226205425/https://www.politico.com/news/2021/12/09/biden-inflation-next-year-523984 |archive-date=December 26, 2021}}

A 2022 analysis by the Federal Reserve Bank of Kansas City ascertained the role America is playing in the current inflationary trend worldwide. Before 2019, the U.S. was seen as a last resort for consumer spending during a global recession, but after 2020, U.S. exports have contributed to foreign inflation. At the same time, energy prices have gone up as well as the value of the U.S. dollar, which both increased monetary pressures on nations that mostly rely on energy imports. In effect, the strength of the U.S. dollar and sanctions on energy commodities have contributed to global inflation in 2022.[https://www.kansascityfed.org/research/economic-bulletin/price-pressures-for-us-exporters-and-a-strong-dollar-have-increased-inflation-in-foreign-countries/ "Price Pressures for U.S. Exporters and a Strong Dollar Have Increased Inflation in Foreign Countries"] kansascityfed.org Economic Bulletin International Inflation. Retrieved 12 September 2022.

An analysis conducted by Politico in May 2023 found that in the United States, wage growth for the bottom 10th percentile of the wage scale beat inflation by a strong 5.7% from 2020 through 2022. For the middle 50th percentile, real wages were down by 1%, while they were down 5% for the top 90th percentile.{{cite news |last1=Guida |first1=Victoria |title=Historic gains: Low-income workers scored in the Covid economy |url=https://www.politico.com/news/2023/05/29/low-income-wages-employment-00097135 |work=Politico |date=May 29, 2023}}

After peaking at 9.1% in June 2022, the United States inflation rate declined steadily into 2023, representing overall disinflation. Analysis conducted by NerdWallet {{not a typo|on}} October 2023 data found that prices for 92 of the 338 goods and services measured in CPI had declined from one year earlier, representing deflation for those items.{{cite news |last1=Helhoski |first1=Anna |title=What prices are actually deflating? |url=https://www.newsnationnow.com/business/your-money/what-prices-are-actually-deflating/ |publisher=NerdWallet |date=November 15, 2023|work=NewsNation}} The Farm Bureau annual survey found the average cost of a Thanksgiving dinner would be down 4.5% from 2022.{{cite news |last1=Schneider |first1=Harold |title=More peas please? Thanksgiving meal costs Americans less this year |url=https://www.reuters.com/markets/us/more-peas-please-thanksgiving-meal-costs-americans-less-this-year-2023-11-15/ |publisher=Reuters |date=November 15, 2023}}

On July 26, the FED raised the interest rate to 5.5%, the highest since 2001;{{Cite news |date=2023-07-26 |title=Fed raises interest rates to highest in 22 years |url=https://www.bbc.com/news/business-66316710 |access-date=2023-08-04 |work=BBC News |language=en-GB}} in October, the 10-year Treasury yield rose to 5%, a 16-year high,{{Cite web |last=Li |first=Yun |date=2023-10-19 |title=10-year Treasury yield rises to 5%, the highest level for the key rate in 16 years |url=https://www.cnbc.com/2023/10/19/us-treasurys-ahead-of-fed-chair-powell-speech.html |access-date=2023-11-08 |website=CNBC |language=en}}{{Cite news |last=Timiraos |first=Nick |title=Higher Bond Yields Could End the Fed's Historic Rate Rises |url=https://www.wsj.com/economy/central-banking/higher-bond-yields-could-end-the-feds-historic-rate-rises-f54b65d3 |access-date=2023-11-08 |website=WSJ |language=en-US}} while the 30-year fixed mortgage rate rose to 8%, a 23-year high.{{Cite web |last=Olick |first=Diana |date=2023-10-18 |title=The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar |url=https://www.cnbc.com/2023/10/18/30-year-fixed-mortgage-rate-just-hit-8percent-for-the-first-time-since-2000.html |access-date=2023-11-08 |website=CNBC |language=en}} 2023 was the worst year for US home sales since 1995.{{Cite news |date=2024-01-19 |title=US home sales see worst year since 1995 |url=https://www.bbc.com/news/business-68035274 |access-date=2024-02-20 |language=en-GB}} Despite gloom numbers, the US defied recession fears with 3.3% growth in the fourth quarter.{{Cite web |title=US economy defies recession fears with 3.3% growth in fourth quarter |url=https://www.ft.com/content/05c88898-7573-426f-b656-5c76e3a51bfc |access-date=2024-02-22 |website=www.ft.com}}{{Cite news |date=2024-01-26 |title=US Economy Outstrips China, Adds a Korea Worth of GDP |url=https://www.bloomberg.com/news/newsletters/2024-01-26/global-economy-latest-us-and-china-battle-for-top-economy |access-date=2024-02-22 |work=Bloomberg.com |language=en}}

As of August 2023, there has been no evidence that the Inflation Reduction Act increased or decreased inflation.{{cite news |author1=Josh Boak |author2=Paul Wiseman |date=August 13, 2023 |title=Yes, inflation is down. No, the Inflation Reduction Act doesn't deserve the credit |url=https://apnews.com/article/biden-inflation-reduction-climate-anniversary-9950f7e814ac71e89eee3f452ab17f71. |publisher=Associated Press}} Gernot Wagner argues that the benefits of the Act will likely not be felt before the 2024 election, but that the act is a great long-term strategy to decouple from volatile energy markets that drive inflation.

At the end of 2023, the U.S. Census Bureau found that if housing inflation is taken out, inflation would have been 1.8% instead of 3.2%. Climate-change also exacerbated home insurance premiums in the U.S., which rose 33% between 2020 and 2023.{{Cite web |last=Becker |first=William S. |date=2024-07-22 |title=Opinion: Climate inflation is eating your paycheck — and it's only going to get worse |url=https://thehill.com/opinion/energy-environment/4782252-climate-inflation-economic-impact/ |access-date=2024-07-24 |website=The Hill |language=en-US}}

As of April 2024, the annual inflation rate in the United States was 3.5% for the twelve months ending in March, compared to 7% in 2021 and 6.5% in 2022.{{Cite web |date=2008-07-23 |title=Current US Inflation Rates: 2000-2024 |url=https://www.usinflationcalculator.com/inflation/current-inflation-rates/ |access-date=2024-04-15 |website=www.usinflationcalculator.com |language=en-US}}{{Cite web |title=Consumer Price Index Summary - 2024 M03 Results |url=https://www.bls.gov/news.release/cpi.nr0.htm |access-date=2024-04-15 |website=www.bls.gov |language=en-us}}{{Cite web |date=2024-04-10 |title=Higher gas and rents keep US inflation elevated, likely delaying Fed rate cuts |url=https://apnews.com/article/inflation-prices-rates-economy-federal-reserve-biden-f02b969d1b44a7ccb0385be03f766de0 |access-date=2024-04-15 |website=AP News |language=en}}

An April 2024 Wall Street Journal poll across seven political swing states in the United States found that 74% of respondents thought inflation had worsened over the preceding year, though the inflation rate had declined by nearly half from one year earlier. On net, respondents in every state said the economy had improved in their state over the past two years, though they believed the national economy had worsened.{{cite news |last1=Ip |first1=Greg |date=April 4, 2024 |title=What's Wrong With the Economy? It's You, Not the Data |url=https://www.wsj.com/economy/consumers/whats-wrong-with-the-economy-its-you-not-the-data-cfa911e6 |work=The Wall Street Journal}} Numerous surveys showed that respondents considered inflation the single most important indicator of economic performance and that consumers were more likely to perceive inflation as price levels rather than the pace of price increases.{{cite news |last1=Galston |first1=William |date=March 25, 2024 |title=Inflation and the gap between economic performance and economic perceptions |url=https://www.brookings.edu/articles/inflation-and-the-gap-between-economic-performance-and-economic-perceptions/ |publisher=Brookings Institution}} The Federal Reserve February 2024 Survey of Consumer Expectations found that consumers had a median expectation of a 3.0% inflation rate in the coming year, and 2.7% over a three-year time horizon.{{cite news |date=March 11, 2024 |title=Inflation Expectations Increase at the Medium and Longer-Term Horizons |url=https://www.newyorkfed.org/newsevents/news/research/2024/20240311 |publisher=Federal Reserve Bank of New York}}

The inflation surge and aggressive Federal Reserve response caused widespread concern among economists and market analysts that a U.S. recession would imminently result. As the Federal Reserve sharply increased the fed funds rate to combat the inflation surge, the longest and deepest Treasury inverted yield curve in history began in July 2022. Many analysts consider an inverted yield curve to be a harbinger of recession. No recession had materialized by July 2024, economic growth remained steady, and a Reuters survey of economists that month found they expected the economy to continue growing for the next two years. An earlier survey of bond market strategists found a majority no longer believed an inverted curve to be a reliable recession predictor.{{cite news |last1=Peck |first1=Emily |title=Why everyone was so wrong about the 2023 economy |url=https://www.axios.com/2023/12/22/2023-economy-predictions-wrong-recession |work=Axios |date=December 22, 2023}}{{cite news |last1=Barbuscia |first1=Davide |title=US yield curve nears flip with jury out on recession signal |url=https://www.reuters.com/markets/rates-bonds/us-yield-curve-nears-flip-with-jury-out-recession-signal-2024-07-29/#:~:text=%22Right%20now%2C%20as%20the%20yield,previous%20inversion%20record%20from%201978. |publisher=Reuters |date=July 29, 2024}}{{cite news |title=10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity |url=https://fred.stlouisfed.org/series/T10Y2Y |publisher=Federal Reserve Economic Data}}

July 2024 data showed that the inflation rate had dropped to 2.9%, the lowest since March 2021, with used car prices returning to normal following the 2020–2023 global chip shortage.{{cite web |last=Subramanian |first=Pras |date=2024-08-14 |title=Used car prices fall again in July, down nearly 20% from pandemic highs |url=https://finance.yahoo.com/news/used-car-prices-fall-again-in-july-down-nearly-20-from-pandemic-highs-162244164.html |access-date=2024-08-15 |publisher=Yahoo! Finance}} Increases in rent,{{Cite web |last=Narea |first=Nicole |date=2024-08-14 |title=The inflation crisis appears to be over. What happens next? |url=https://www.vox.com/business-and-finance/367103/inflation-report-cpi-ppi-us-economy-fed-rate-cut |access-date=2024-08-14 |website=Vox |language=en-US}} childcare{{cite web |last=Wong |first=Venessa |date=2024-08-14 |title=Child-care costs keep rising faster than overall prices |url=https://www.marketwatch.com/livecoverage/cpi-report-for-july-inflation-expected-to-rise-again-after-last-month-s-surprise-fall/card/child-care-costs-keep-rising-faster-than-overall-prices-4wnNJD91W3xygHPTPbbU |access-date=2024-08-15 |publisher=MarketWatch}} and electricity{{Cite web |last=Estes |first=Adam Clark |date=2024-08-15 |title=The hidden reason why your power bill is so high |url=https://www.vox.com/technology/366885/utility-power-bill-price-clean-energy |access-date=2024-08-16 |website=Vox |language=en-US}} still outpaced inflation at around 5%. According to think-tank Energy Innovations, electricity prices may continue rising due to incentives for investor-owned utilities in the United States to overspend on capital projects for transmission lines and distribution lines instead of on distributed and renewable electricity generation which reduces the amount spent on transmission networks that climate change has made more expensive to build and maintain.

An August 2024 survey of inflation expectations showed consumers predicting 2.3% average inflation over the next three years, the lowest figure since the survey was created in 2013.{{Cite web |last=Rugaber |first=Christopher |date=2024-08-12 |title=Americans' refusal to keep paying higher prices may be dealing a final blow to US inflation spike |url=https://apnews.com/article/inflation-prices-consumers-economy-spending-federal-reserve-c69408f05baeffac0023ceb76b747999 |access-date=2024-09-01 |website=AP News |language=en}}

Following Trump's tariff threats, long-term inflation expectations rose to 3.3 percent in January 2025 from 3.0 percent in December, the highest level since June 2008, according to a University of Michigan survey.{{cite news |title=US consumer inflation expectations soar in January on tariff fears |url=https://www.reuters.com/markets/us/us-consumer-inflation-expectations-soar-january-tariff-fears-2025-01-10/ |work=Reuters |date=10 January 2025}}

In February 2025, consumer inflation in the United States was reportedly 2.8% on a year-over-year basis, still above the federal reserve's target rate of 2%, and expected to climb following Trump's implementation of tariffs.{{Cite web |last=Mutikani |first=Lucia |date=March 12, 2025 |title=US consumer inflation slows in February; tariffs expected to boost prices |url=https://www.reuters.com/markets/us/us-consumer-price-growth-slows-february-2025-03-12/ |access-date=March 17, 2025 |website=Reuters}}

Canada also saw multi-decade highs in inflation, hitting 5.1% in February 2022{{Cite web |last=Evans |first=Pete |date=February 16, 2022 |title=Canada's inflation rate rises to 5.1% — highest since 1991 |url=https://www.cbc.ca/news/business/canada-inflation-january-1.6353464 |url-status=live |archive-url=https://web.archive.org/web/20220216135214/https://www.cbc.ca/news/business/canada-inflation-january-1.6353464 |archive-date=February 16, 2022 |publisher=Canadian Broadcasting Corporation}} and further increasing to 6.7% two months later.{{Cite web |last=Evans |first=Pete |date=April 20, 2022 |title=Canada's inflation rate jumps to new 31-year high of 6.7% |url=https://www.cbc.ca/news/business/canada-inflation-1.6424388 |url-status=live |archive-url=https://web.archive.org/web/20220514064224/https://www.cbc.ca/news/business/canada-inflation-1.6424388 |archive-date=May 14, 2022 |publisher=Canadian Broadcasting Corporation}} In April, inflation rose again to 6.8%,{{Cite web |date=May 18, 2022 |title=Consumer Price Index, April 2022 |url=https://www150.statcan.gc.ca/n1/daily-quotidien/220518/dq220518a-eng.htm |url-status=live |archive-url=https://web.archive.org/web/20220606193351/https://www150.statcan.gc.ca/n1/daily-quotidien/220518/dq220518a-eng.htm |archive-date=June 6, 2022 |website=Statistics Canada |publisher=Government of Canada}}{{Cite news |last=Argitis |first=Theophilos |date=May 18, 2022 |title=Canadian Inflation Hits New Three-Decade High of 6.8% on Housing |url=https://www.bloomberg.com/news/articles/2022-05-18/canada-s-inflation-rises-to-new-three-decade-highs-on-housing |archive-url=https://archive.today/20220518133337/https://www.bloomberg.com/news/articles/2022-05-18/canada-s-inflation-rises-to-new-three-decade-highs-on-housing |archive-date=May 18, 2022 |work=Bloomberg News |publisher=Bloomberg L.P.}} before jumping to 7.7% in May, the highest ever since 1983.{{Cite web |date=June 22, 2022 |title=Consumer Price Index, May 2022 |url=https://www150.statcan.gc.ca/n1/daily-quotidien/220622/dq220622a-eng.htm |url-status=live |archive-url=https://web.archive.org/web/20220624010912/https://www150.statcan.gc.ca/n1/daily-quotidien/220622/dq220622a-eng.htm |archive-date=June 24, 2022 |website=Statistics Canada |publisher=Government of Canada}}{{Cite news |last=Evans |first=Pete |date=June 22, 2022 |title=Canada's inflation rate now at 7.7% — its highest point since 1983 |url=https://www.cbc.ca/news/business/inflation-rate-canada-1.6497189 |url-status=live |archive-url=https://web.archive.org/web/20220622124803/https://www.cbc.ca/news/business/inflation-rate-canada-1.6497189 |archive-date=June 22, 2022 |work=CBC News |publisher=Canadian Broadcasting Corporation}}

In July 2022, Mexico's INEGI reported a year-on-year increase in consumer prices of 8.15%, against a Central Bank target of 2–4%.{{cite news |last=De Haldevang |first=Max |date=August 11, 2022 |title=Mexico Raises Key Interest Rate to Highest Ever as Inflation Accelerates |url=https://www.bloomberg.com/news/articles/2022-08-11/banxico-raises-key-rate-to-highest-ever-as-inflation-accelerates |publisher=Bloomberg}}

{{See also|La Década Perdida|Argentine monetary crisis}}

In Brazil, inflation hit its highest rate since 2003 — prices rose 10.74% in November 2021 compared to November 2020. Economists predicted that inflation has peaked and that the economy may be headed for recession, in part due to aggressive interest rate increases by the central bank.{{Cite news |last=Rosati |first=Andrew |date=December 10, 2021 |title=Brazil's Inflation Likely Peaked After Hitting 18-Year High |work=Bloomberg |url=https://www.bloomberg.com/news/articles/2021-12-10/brazil-s-consumer-prices-rise-less-than-forecast-in-november |url-status=live |archive-url=https://web.archive.org/web/20220101184610/https://www.bloomberg.com/news/articles/2021-12-10/brazil-s-consumer-prices-rise-less-than-forecast-in-november |archive-date=January 1, 2022}}

According to Austing Rating data, Brazil ended 2022 with the sixth lowest G20 inflation rate. Inflation recorded in Brazil in 2022 was below the United States for the first time in 15 years, in addition to being lower than that of the United Kingdom and the 6th lowest in the G20 (group of the 19 largest and most important economies in the world and the European Union).{{Cite web |last=Shoes |first=Eloisa |date=2023-01-19 |title=Inflação do Brasil está entre as menores do Mundo em 2022 |url=https://investidoresbrasil.com.br/inflacao-do-brasil-esta-entre-as-menores-do-mundo-em-2022/ |access-date=2023-02-16 |website=Investidores Brasil - Juntos Podemos Mais |language=pt-BR}}

In Argentina, a country with a chronic inflation problem, the interest rate was hiked to 69.5% in August, as inflation has further deteriorated hitting a 20-year high at 70%, and is forecasted to top 90% by the end of the year.{{Cite news |date=August 12, 2022 |title=Argentina rate hiked to 69.5% as inflation hits 20-year high |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62514970 |access-date=August 19, 2022}} Inflation hit past 100% in February 2023 for the first time since 1991.{{Cite news |date=2023-03-15 |title=Argentina inflation soars past 100% mark |language=en-GB |work=BBC News |url=https://www.bbc.com/news/world-latin-america-64960385 |access-date=2023-03-15}}{{Cite news |last1=Bianco |first1=Miguel Lo |last2=Martini |first2=Claudia |date=2023-03-14 |title=Argentina inflation tops 100% for first time since 1991 |language=en |work=Reuters |url=https://www.reuters.com/world/americas/argentines-struggle-shadow-100-inflation-2023-03-14/ |access-date=2023-03-15}} Argentina's December 2023 annual inflation was the highest in the world at 211.4%.{{Cite web |agency=AP |date=2024-01-12 |title=Argentina's annual inflation soars to 211.4%, the highest in the world |url=https://english.elpais.com/economy-and-business/2024-01-11/argentinas-annual-inflation-soars-to-2114-the-highest-in-32-years.html |access-date=2024-02-06 |website=EL PAÍS English |language=en-us}}

Chile had low inflation for several years thanks to the monetary policy of its autonomous central bank. However, in 2022 there was a record intranual inflation of 14.1%, the highest in the last 30 years. There is a consensus among economists that Chilean inflation is mainly caused by endogenous factors, especially the aggressive expansionary policies during the COVID-19 pandemic and the massive withdrawals from pension funds. Economists have also predicted a possible recession by 2023 due to high interest rates to combat inflation.{{Cite web |title=Inflación anual de Chile es la más alta en 30 años |url=https://www.cnnchile.com/economia/inflacion-anual-chile-30-anos_20220909/ |access-date=2022-09-26 |website=CNN Chile |language=es}}{{Cite web |date=2022-09-09 |title=La mayor en 30 años: Expertos analizan compleja persistencia inflacionaria y las acciones del Banco Central para controlarla |url=https://www.emol.com/noticias/Economia/2022/09/09/1072368/economistas-politica-monetaria-inflacion.html |access-date=2022-09-26 |website=Emol |language=es}}

{{See also|2021–present United Kingdom cost-of-living crisis}}

In the Netherlands, the average 2021 inflation rate was the highest since 2003.{{Cite web |date=January 11, 2022 |title=Torenhoge inflatie in december, cijfer over heel 2021 naar 2,7 procent |url=https://nos.nl/artikel/2412657-torenhoge-inflatie-in-december-cijfer-over-heel-2021-naar-2-7-procent |url-status=live |archive-url=https://web.archive.org/web/20220111061119/http://nos.nl/artikel/2412657-torenhoge-inflatie-in-december-cijfer-over-heel-2021-naar-2-7-procent |archive-date=January 11, 2022 |publisher=NOS |language=nl}} With energy prices having increased by 75%, December saw the highest inflation rate in decades. In 2023, the Netherlands fell into recession from April to June.{{Cite web |title=Netherlands dips into recession after strong COVID rebound |publisher=DW |date=August 16, 2023 |url=https://www.dw.com/en/netherlands-dips-into-recession-after-strong-covid-rebound/a-66551394 |access-date=2023-08-30 |website=dw.com |language=en}}

In the UK, inflation reached a 40-year high of 10.1% in July 2022, driven by food prices, and further increase is anticipated in October when higher energy bills are expected to hit.{{Cite news |date=August 17, 2022 |title=UK inflation: Food costs push price rises to new 40-year high |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62562025 |access-date=August 19, 2022}} In September, the Bank of England warned the UK may already be in recession{{Cite news |date=2022-09-22 |title=UK may already be in recession - Bank of England |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62991376 |access-date=2022-09-27}} and in December, the interest rate was raised by the ninth time in the year to 3.5%, the highest level for 14 years.{{Cite news |date=2022-12-15 |title=UK interest rates raised to highest level for 14 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-63977963 |access-date=2023-01-05}}

UK food and drink prices rose by 19.2% in the year to March 2023, a 45-year high.{{Cite news |date=2023-04-19 |title=Inflation falls but food prices climb to 45-year high |language=en-GB |work=BBC News |url=https://www.bbc.com/news/uk-northern-ireland-65317256 |access-date=2023-04-25}}{{Cite web |title=Consumer price inflation, UK - Office for National Statistics |url=https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/march2023 |access-date=2023-04-25 |website=www.ons.gov.uk}} On 3 August the BoE raised the interest rate to 5.25%, the highest since 2008.{{Cite news |date=2023-08-02 |title=Interest rates: No cut until 'solid evidence' price rises slowing - Bank boss |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-66384289 |access-date=2023-08-04}} The UK entered a technical recession in the final six months of 2023.{{Cite news |date=2024-02-15 |title=UK economy fell into recession after people cut spending |url=https://www.bbc.com/news/business-68285833 |access-date=2024-04-05 |language=en-GB}}{{Cite web |date=2024-03-28 |title=Revised figures confirm UK ended 2023 in recession |url=https://www.bbc.co.uk/news/live/business-68680004 |access-date=2024-04-05 |website=BBC News |language=en-gb}}

Germany's inflation rate reached 11.7% in October 2022, the highest level since 1951.{{cite news |last1=Hannon |first1=Paul |date=October 31, 2022 |title=Eurozone Inflation Rate Rises to 10.7% as Recession Looms |work=The Wall Street Journal |url=https://www.wsj.com/articles/eurozone-inflation-rate-rises-to-10-7-as-recession-looms-11667210401}} In 2023, Germany fell into recession from January to March due to persistent inflation.{{Cite news |date=2023-05-25 |title=Germany falls into recession as inflation hits economy |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-65707206 |access-date=2023-05-27}}

In France, inflation reached 5.8% in May, the highest in more than three decades.{{cite web|title=Projections macroéconomiques – Juin 2022|url=https://publications.banque-france.fr/projections-macroeconomiques-juin-2022|website=Banque de France|language=fr|date=2022-06-21|access-date=2022-10-25}}

An estimated 70,000 people protested against the Czech government as a result of rising energy prices.{{cite web |author= |date=2022-09-04 |title=Tens of thousands protest in Prague against Czech government, EU and NATO |url=https://www.reuters.com/world/europe/tens-thousands-protest-prague-against-czech-government-eu-nato-2022-09-03/ |access-date=2022-09-30 |website=Reuters}}[https://english.news.cn/europe/20220906/6dd60e11945b412b81ea9d6f95c46382/c.html "Outcry grows as European billpayers struggle amid historic energy crisis"]

english.news.cn. Retrieved 13 September 2022.

In June 2022, the European Central Bank (ECB) decided to raise interest rates for the first time in eleven years due to the elevated inflation pressure.{{Cite journal |date=June 9, 2022 |title=Monetary policy decisions |url=https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220609~122666c272.en.html |url-status=live |archive-url=https://web.archive.org/web/20220612152142/https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220609~122666c272.en.html |archive-date=June 12, 2022 |website=European Central |language=en|last1=Bank |first1=European Central }}{{Cite news |date=June 9, 2022 |title=Eurozone interest rates set to rise for first time in 11 years |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-61749090 |url-status=live |archive-url=https://web.archive.org/web/20220611084618/https://www.bbc.com/news/business-61749090 |archive-date=June 11, 2022}} In July, the euro fell below the U.S. dollar for the first time in 20 years, mainly due to fears of energy supply restrictions from Russia, but also because the ECB lagged behind the US, UK and other central banks in raising interest rates. Eurozone inflation hit 9.1% and 10% in August and September, respectively,{{Cite web |last=Ward-Glenton |first=Hannah |title=Euro zone inflation hits another record of 9.1% as food and energy prices soar |url=https://www.cnbc.com/2022/08/31/euro-zone-inflation-hits-another-record-of-9point1percent-as-food-and-energy-prices-soar.html |access-date=September 2, 2022 |website=CNBC |date=August 31, 2022 |language=en}}{{cite web |url=https://www.dw.com/en/eurozone-inflation-hits-record-10-highest-in-the-history-of-the-euro/a-63293956 |title=Eurozone inflation hits record 10%, highest in the history of the euro |author= |date=2022-09-30 |website=DW |access-date=2022-09-30}} prompting the ECB to raise interest rates for a second time in the year to 1.25% in early September.{{Cite news |date=2022-09-08 |title=Eurozone interest rates in record rise to fight inflation |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-62837336 |access-date=2022-09-26}} In October, the inflation hit 10.7%, the highest since records began in 1997.{{Cite web |last=Amaro |first=Silvia |title=Euro zone inflation hits record high of 10.7% as growth slows sharply |url=https://www.cnbc.com/2022/10/31/euro-zone-inflation-hits-10point7percent-in-october-.html |access-date=2022-11-04 |website=CNBC |date=October 31, 2022 |language=en}}

In 2023, the Eurozone fell into recession from January to March{{Cite news |date=2023-06-08 |title=Eurozone in recession as rising prices hit spending |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-65844370 |access-date=2023-06-10}} and also in March, the Eurozone core inflation hit a record 5.7%, the highest level since records began in 2001.{{Cite news |last=Hannon |first=Paul |date=2023-03-31 |title=Eurozone Core Inflation Hits Record High |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/eurozone-core-inflation-hits-record-high-6f2032b9 |access-date=2023-04-01 |issn=0099-9660}} On 14 September, the ECB raised the interest rate for the tenth consecutive time to 4%, the highest since the euro was launched in 1999.{{Cite news |last1=Canepa |first1=Francesco |last2=Koranyi |first2=Balazs |date=2023-09-14 |title=ECB raises rates to record high, signals end to hikes |language=en |work=Reuters |url=https://www.reuters.com/markets/europe/ecb-considers-lifting-rates-record-high-even-economy-slows-2023-09-13/ |access-date=2023-09-24}}{{Cite news |date=2023-09-14 |title=Eurozone interest rates raised to all-time high |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-66805855 |access-date=2023-09-24}}

In April 2022, the Philippines recorded 6.1% inflation, its highest since October 2018. The Philippine Statistics Authority forecasted that the number would most likely be higher in the following months. President Bongbong Marcos claimed that the record inflation rate was "not that high".{{Cite web |last=Cuyco |first=Jan |date=July 6, 2022 |title=That high: What you need to know about inflation in the Philippines |url=https://interaksyon.philstar.com/trends-spotlights/2022/07/06/221496/inflation-philippines-explainer/ |url-status=live |archive-url=https://web.archive.org/web/20220713193921/https://interaksyon.philstar.com/trends-spotlights/2022/07/06/221496/inflation-philippines-explainer/ |archive-date=July 13, 2022 |website=Interaksyon |language=en-US}} On January 5, 2023, the Philippines rapidly increased to a record-breaking 8.1% inflation from December 2022.{{Cite web |date=January 5, 2023 |title=Summary Inflation Report Consumer Price Index (2018=100): December 2022 |url=https://psa.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-index-2018100-december-2022 |website=Philippine Statistics Authority |language=en}}{{Cite news |first=Ronnel W. |last=Domingo |date=January 5, 2023 |title=Philippine inflation rose further to 8.1% in December |url=https://business.inquirer.net/380969/philippine-inflation-rose-again-at-8-1-in-december |newspaper=Philippine Daily Inquirer |language=en}}

In October 2022, the Japanese yen touched a 32-year low against the U.S. dollar, mainly because of the strength of the latter.{{Cite news |date=2022-10-14 |title=Japanese yen touches 32-year low against US dollar |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-63252034 |access-date=2022-11-04}}{{Cite web |title=Yen hits fresh 32-year low of 151 against U.S. dollar |url=https://asia.nikkei.com/Business/Markets/Currencies/Yen-hits-fresh-32-year-low-of-151-against-U.S.-dollar |access-date=2022-11-04 |website=Nikkei Asia |language=en-GB}} In November, the Japanese core inflation rate reached a 41-year high of 3.7%.{{cite news |title=Cost of living: Japan's inflation hits a 41-year high |url=https://www.bbc.com/news/business-64072866 |publisher=BBC |date=December 23, 2022|author1=Monica Miller|author2=Mariko Oi}}

Inflation in New Zealand exceeded forecasts in July 2022, reaching 7.3%, which is the highest since 1990.{{cite web |url=https://www.bloomberg.com/news/articles/2022-07-17/new-zealand-inflation-accelerates-more-than-expected-to-7-3 |title=New Zealand Inflation Outpaces Forecasts at Fresh 32-Year High |last=Brockett |first=Matthew |date=July 17, 2022 |publisher=Bloomberg |access-date=July 18, 2022 }} Economists at ANZ reportedly said they expected faster interest rate increases to counteract inflationary pressures.{{cite web |url=https://www.abc.net.au/news/2022-07-18/treasurer-jim-chalmers-warns-on-rates-budget-nz-inflation-surges/101247330 |title=Federal Treasurer Jim Chalmers warns on budget outlook, New Zealand inflation surge hints at even bigger interest rate rises |last=Janda |first=Michael |date=July 17, 2022 |publisher=ABC News |access-date=July 18, 2022 }}

In Fiji, inflation rose to 4.7% in April 2022 compared to –2.4% in 2021.{{Cite web |last=Fijivillage |title=Annual headline inflation rises to 4.7% in April |url=https://www.fijivillage.com/news/Annual-headline-inflation-rises-to-47-in-April-54xrf8/ |url-status=live |archive-url=https://web.archive.org/web/20220526092408/https://www.fijivillage.com/news/Annual-headline-inflation-rises-to-47-in-April-54xrf8/ |archive-date=May 26, 2022 |website=www.fijivillage.com |language=en}} Food prices rose by 6.9% in April 2022, fuel increased by 25.2%, kerosene by 28.5% and gas by 27.7%.{{Cite web |last=Fijivillage |title=Food prices rose by 6.9% in April |url=https://www.fijivillage.com/news/Food-prices-rose-by-69-in-April-4x58fr/ |url-status=live |archive-url=https://web.archive.org/web/20220611092036/https://www.fijivillage.com/news/Food-prices-rose-by-69-in-April-4x58fr/ |archive-date=June 11, 2022 |website=www.fijivillage.com |language=en}}

In November 2023, Australia lifted the interest rate to 4.35%, a 12-year high.{{Cite news |last=Cole |first=Wayne |date=2023-11-07 |title=Australia's central bank raises rates to 12-year high, tempers hawkish stance |language=en |work=Reuters |url=https://www.reuters.com/markets/rates-bonds/australias-central-bank-raises-rates-12-year-high-tempers-hawkish-stance-2023-11-07/ |access-date=2023-11-08}}

File:U.S. Presidential Election Swing by County from 2020 to 2024.svg, all 50 states and DC swung rightward, as did around 90% of counties.{{Cite news |last1=Bloch |first1=Matthew |last2=Collins |first2=Keith |last3=Gebeloff |first3=Robert |last4=Hernandez |first4=Marco |last5=Khurana |first5=Malika |last6=Levitt |first6=Zach |date=November 6, 2024 |title=Early Results Show a Red Shift Across the U.S. |url=https://www.nytimes.com/interactive/2024/11/06/us/politics/presidential-election-2024-red-shift.html |access-date=November 10, 2024 |work=The New York Times |issn=0362-4331}}]]

In 2024, for the first time ever, every governing party facing election in a developed country lost vote share, and many experienced their worst electoral performances in years. These governing parties had a variety of ideological leanings, in many different countries.{{Cite news |last=Burn-Murdoch |first=John |date=2024-11-07 |title=Democrats join 2024's graveyard of incumbents |url=https://www.ft.com/content/e8ac09ea-c300-4249-af7d-109003afb893 |access-date=2024-12-05 |work=Financial Times |quote=That different politicians, different parties, different policies and different rhetoric deployed in different countries have all met similar fortunes suggests that a large part of Tuesday’s American result was locked in regardless of the messenger or the message. The wide variety of places and people who swung towards Trump also suggests an outcome that was more inevitable than contingent.}} This was widely attributed to the worldwide impact of inflation, as economic sentiment across the world dropped. The electoral declines occurred after inflation had peaked and started decreasing, meaning that electorates assigned blame with the benefit of hindsight.{{Cite web |last=Lippert |first=Laura Clancy and Jordan |date=2024-06-07 |title=Economic ratings across 34 countries are more negative than positive |url=https://www.pewresearch.org/short-reads/2024/06/07/economic-ratings-across-34-countries-are-more-negative-than-positive/ |access-date=2024-12-05 |website=Pew Research Center |language=en-US}}

For example, the Democratic Party lost the 2024 United States presidential election and 3% in vote share, while losing the popular vote for the first time since 2004, with the same vote share of 48.3% in both elections. The election was very close due to political polarization, with Democratic Party losing the popular vote by 1.5% and the tipping-point state by 1.7%. Despite the popular vote margin of victory being the closest since 2000, the swings to the right were nearly everywhere. All 50 states and D.C. shifted rightward by varying margins, the first time they all swung in the same direction since 1976.{{Cite web |url=https://abcnews.go.com/538/americas-swing-2024-wide-deep/story?id=116639076 |title=America's swing to the right in 2024 was wide, if not always deep |date=December 10, 2024 |access-date=December 11, 2024 |first=Geoffrey |last=Skelley |publisher=ABC News|quote=From one presidential election to the next, more states usually swing toward the party that gains ground compared with how it performed four years earlier. However, it's rare for every state to move in the same direction, even in elections where one candidate wins decisively. ... But in 2024, all 50 states and D.C. swung to the right to varying degrees based on their margins versus the 2020 race. This marked the first presidential election since 1976 in which all 51 components of the Electoral College moved in the same direction relative to how they voted four years earlier.}} Around 90% of U.S. counties swung rightward, and not a single county flipped to the Democrats, the first time since 1932 that a party failed to flip a single county.{{Cite web|url=https://econotimes.com/Kamala-Harris-Breaks-a-90-Year-Record-Not-a-Single-County-FlippedWhat-Went-Wrong-in-2024-1695747|title=Kamala Harris Breaks a 90-Year Record: ‘Not a Single County Flipped!’—What Went Wrong in 2024?|date=December 2, 2024|access-date=December 11, 2024|website=EconoTimes}} The Democratic Party also won the highest-income voters while losing the presidential election.{{Cite news |last1=Suss |first1=Joel |last2=Xiao |first2=Eva |last3=Burn-Murdoch |first3=John |last4=Murray |first4=Clara |last5=Vincent |first5=Jonathan |date=2024-11-09 |title=Poorer voters flocked to Trump — and other data points from the election |url=https://www.ft.com/content/6de668c7-64e9-4196-b2c5-9ceca966fe3f |access-date=2024-11-12 |work=Financial Times}}

As another example, the Conservative Party experienced the worst defeat in their history, losing 19.9% in vote share and receiving just 23.7% of the vote in the 2024 United Kingdom general election, winning fewer seats than even their landslide defeat in 1906. This was the Labour Party's first victory in 19 years, with the Labour vote share of 33.7% making it the least proportional general election in British history according to the Gallagher index.{{Cite news |title=Britain swings to the center-left in a historic U.K. election landslide |url=https://www.npr.org/2024/07/05/g-s1-8456/uk-labour-party-win-keir-starmer |access-date=2025-02-04 |work=NPR |language=en}}{{Cite news |title=Britain’s general election was its least representative ever |url=https://www.economist.com/britain/2024/07/11/britains-general-election-was-its-least-representative-ever |access-date=2025-02-10 |work=The Economist |issn=0013-0613}}

In countries where the incumbent party remained in power, they often lost their majorities in their respective parliaments. This included Japan, where the Liberal Democratic Party (LDP), who have governed the country nearly continuously since 1955, suffered its worst loss since 2009, as voters grappled with rising housing costs and inflation.{{Cite web |title=Japan's ruling party loses its majority in blow to new PM |url=https://www.bbc.com/news/articles/c8xpev42g78o |access-date=2024-12-05 |website=www.bbc.com |language=en-GB}} India's Bharatiya Janata Party (BJP) lost the parliamentary majority that it had held since 2014, with voters citing inflation as a top issue.{{Cite web |last=Ioanes |first=Ellen |date=2024-06-07 |title=Modi won the Indian election. So why does it seem like he lost? |url=https://www.vox.com/world-politics/354352/modi-india-election-gandhi-bjp-uttar-pradesh-inauguration-hindutva |access-date=2024-12-05 |website=Vox |language=en-US}} In South Africa, the ruling African National Congress (ANC) lost the parliamentary majority that it had held since the inaugural post-apartheid election in 1994.{{cite news|url=https://www.enca.com/news-top-stories/2024-elections-enca-projects-anc-will-take-45-national-vote|title=2024 ELECTIONS: eNCA Project ANC Will Take 45% Of National Vote|publisher=eNCA|date=30 May 2024|accessdate=30 May 2024|archive-date=30 May 2024|archive-url=https://web.archive.org/web/20240530123735/https://www.enca.com/news-top-stories/2024-elections-enca-projects-anc-will-take-45-national-vote|url-status=live}}

In South Korea, the 2024 parliamentary midterm elections resulted in incumbent president Yoon Suk Yeol's party suffering an electoral defeat, which weakened his political power.{{cite web |last1=Shin |first1=Mitch |date=2024-04-11 |title=In South Korea, President Yoon's Lame Duck Era Officially Begins |url=https://thediplomat.com/2024/04/in-south-korea-president-yoons-lame-duck-era-officially-begins/ |url-status=live |archive-url=https://web.archive.org/web/20240416130903/https://thediplomat.com/2024/04/in-south-korea-president-yoons-lame-duck-era-officially-begins/ |archive-date=16 April 2024 |access-date=17 April 2024 |publisher=The Diplomat}}{{cite web |date=11 April 2024 |title=Election rout makes Yoon's 'lame duck' fears reality |url=https://www.japantimes.co.jp/news/2024/04/11/asia-pacific/politics/election-rout-yoon-lame-duck/ |url-status=live |archive-url=https://web.archive.org/web/20240411094953/https://www.japantimes.co.jp/news/2024/04/11/asia-pacific/politics/election-rout-yoon-lame-duck/ |archive-date=11 April 2024 |access-date=17 April 2024 |website=The Japan Times |publisher=Jiji Press}} On 3 December 2024, Yoon declared martial law in South Korea, the first time it had been declared since the military dictatorship of Chun Doo-hwan in 1980, accusing members of the National Assembly of supporting North Korea; however, Yoon lifted it after the National Assembly passed an emergency motion nullifying the declaration several hours after Yoon's speech.{{cite news |title=South Korea cabinet lifts martial law |url=https://www.bbc.com/news/live/cn38321180et?post=asset%3A69e3ba8d-55f4-443e-9531-84ad91772741#post |access-date=3 December 2024 |work=BBC News |date=3 December 2024}} Yoon was successfully impeached and suspended from his presidential powers on 14 December 2024.{{Cite web |date=14 December 2024 |title=South Korea's parliament votes to impeach President Yoon Suk Yeol over his martial law order |first1=Hyung-jin |last1=Kim |last2=Kim |first2=Tong-hyung|url=https://apnews.com/article/south-korea-martial-law-yoon-impeach-6432768aafc8b55be26215667e3c19d0 |url-status=live |archive-url=https://web.archive.org/web/20241215192446/https://apnews.com/article/south-korea-martial-law-yoon-impeach-6432768aafc8b55be26215667e3c19d0 |archive-date=15 December 2024 |access-date=16 December 2023 |website=AP News |language=en}}

This trend continued into early 2025. In the 2025 German federal election, the three parties of the formerly governing "Traffic light coalition" all lost support. In particular, the centre-left Social Democratic Party (SPD) lost over 9% and dropped to third rank with just 16.4% of the vote, their worst result since 1887.{{Cite web |date=24 February 2025 |title=Five key takeaways from the German election |url=https://www.bbc.co.uk/news/articles/cx29wlje6dno |access-date=2 March 2025 |website=BBC News |archive-url=https://web.archive.org/web/20250301214927/https://www.bbc.co.uk/news/articles/cx29wlje6dno |archive-date=1 March 2025 |url-status=live}}

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• 2020s commodities boom
• 2022 stock market decline
• Cost-of-living crisis

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{{reflist}}

• {{Cite web |title=Real interest rates |url=https://data.worldbank.org/indicator/FR.INR.RINR |website=World Bank Open Data}}
• {{Cite web |date=2023-05-04 |title=Real interest rates|url=https://www.visualcapitalist.com/visualized-real-interest-rates-by-country/ |website=Visual Capitalist}}
• FT's [https://www.ft.com/content/088d3368-bb8b-4ff3-9df7-a7680d4d81b2 Global inflation tracker]

{{Energy in Russia}}

{{Financial crises}}

{{COVID-19 pandemic}}

{{2022 Russian invasion of Ukraine|Impact}}

{{DEFAULTSORT:2021-2022 inflation surge}}

Category:2021 in economic history

Category:2022 in economic history

Category:2023 in economic history

Category:Economic impact of the COVID-19 pandemic

Category:Economic history of the United States

Category:Inflation

Economic

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Category:Housing