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Inflation Around The World 2022

It has become obvious that inflation is hitting sharply in most countries of this globe. The consequences of this economic situation can be jeopardizing on all levels. But, what is the meaning of inflation and how does it affect the world economy? Read on to know more about inflation in the world in 2022.

Inflation Meaning

Inflation means the rate of prices increases over a period of time. Consumers’ cost of living depends on the prices of many goods and services and the share of each in the household budget.


According to the International Monetary Fund (IMF), the average inflation rate for the world reached about 8.8% in 2022. However, this figure differs from one country to the other. High inflation can erode the value of money, discourage saving, and make it difficult for businesses to plan for the future.

Inflation Rate Around the World

According to Statista, the inflation rate is to reach 9.9 by the end of 2022 in most of developing countries while it was projected to reach 7.7 in most developed countries. Factors like the invasion of Russia into Ukraine and the cut on some supply chains of basic food ingredients have fueled inflation to reach unprecedented rates. The situation might worsen in 2023 if inflation wheels were not curbed.

How does it affect the economy?

The impact can be harmful to economies, especially the rising ones. In countries where food is largely affected by such high prices, huge problems might occur. Stock markets, Fx, commodities, etc,are all affected by the insane increase in inflation. In fact, Countries like Zimbabwe, Lebanon, Venezuela, and Syria could no longer stand inflation consequences that can jeopardize even the political stability of these countries.


Quick-Recap

To sum it up,2022 has brought higher inflation rates than ever in most countries of the world. Investors around the world are hoping for an ease in inflation acceleration wheels by the coming 2023.May the coming days of the new year bring better prosperity to the world and eases the current situations.


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