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About: 2021–2022 inflation surge     Goto   Sponge   NotDistinct   Permalink

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A worldwide increase in inflation began in mid-2021, with many countries seeing their highest inflation rates in decades. It has been attributed to various causes, including pandemic-related economic dislocation; the fiscal and monetary stimulus provided in 2020 and 2021 by governments and central banks in response to the pandemic; supply shortages (including chip shortages and energy shortages) amid increasing consumer demand; the Russian invasion of Ukraine's effect on global oil prices, natural gas, fertilizer, and food prices; and corporate price gouging. Higher gasoline prices were a major contributor to inflation as oil producers saw record profits. Debate arose over whether inflationary pressures were transitory or persistent. Central banks responded by aggressively increasing inter