Inflation has become world's problem with record highs

By Dilara Zengin and Bahattin Gonultas

BERLIN (AA) - While COVID-19 pandemic-induced supply chain bottlenecks continue to fuel price rises, the fight against inflation has become the most important item on the agenda of the global economy.

As consumer and producer prices continue to spike across the world, the debate around “the new age of inflation” is gaining momentum.

Global price pressures such as ongoing logistics problems, labor shortages and high energy prices challenge the view that inflation will be "temporary.”

According to the latest data, US inflation recently hit its highest level in 31 years.

The consumer price index (CPI) rose 6.2% in October, the largest 12-month increase since November 1990, and climbed 0.9% from the previous month.

As the rise in the cost of living for Americans heightens concerns, analysts said that high inflation may last longer than expected and force the US Federal Reserve (Fed) to hike interest rates sooner.

Fed Chair Jerome Powell noted that supply chain bottlenecks and high inflation are expected to continue “well into next year” and that inflation is expected to cool off in the second or third quarter of 2022.

The price rises in Europe, especially in energy and food, also disturbs citizens.

Annual inflation in the euro area hit 3.4% in September, the highest in the last 13 years.

In Germany, the locomotive of the European economy, the Federal Statistical Office pointed out that annual inflation, which was 4.1% in September, rose to 4.5% in October for the first time since 1993, due to high energy prices and supply problems.

Doubts are growing over the view that the price increases will be "temporary" as claimed by some economists and most central bank officials, including European Central Bank (ECB) President Christine Lagarde.

Lagarde had said the inflation rate would rise much sooner but fall next year.

In China, the world's second largest economy, ex-factory prices increased at their fastest pace in 26 years, pushing consumer price inflation above expectations.

The CPI increased by 1.5% in October compared to the same period of last year, recording the sharpest rise since September 2020.

Producer prices in China have also maintained their rapid hike due to a rally in global commodity prices and the energy crisis across the country.

According to data compiled by Anadolu Agency, the inflation rate in 15 countries varies between 10% and 20%.

Inflation is 10% in Seychelles and Turkmenistan, 10.49% in Burundi, 10.5% in Belarus, 10.6% in Uzbekistan, 10.67% in Brazil and 10.9% in Ukraine, 10.91% in Haiti, 11% in Ghana, 11.63% in Sierra Leone, 12.8% in Georgia, 13.05% in Guinea, 13.5% in Kyrgyzstan, 16.63% in Nigeria and 19.89% in Turkey.

The figure is above 20% in Zambia, Angola, Ethiopia, Iran, Argentina, Zimbabwe, Suriname, Syria, Lebanon, Sudan and Venezuela.