Globally .. Corona raises the prices of goods, and a “quick solution” is excluded
While attributing the reasons for this rise to the Corona pandemic, which began about two years ago, the report ruled out that there would be a "quick solution" to this problem, and talked about the economic and living conditions in some countries.
He pointed out that Americans in the United States suffer from "the highest rate of inflation in 40 years, but they are not alone."
And in the European Union, prices are rising faster than at any time since the adoption of the euro. The annual inflation rate in the United Kingdom reached 5.4 percent last December, the highest rate recorded in nearly 30 years.
In Canada, prices "rose twice as fast as they were before the epidemic." In Japan, the central bank recently warned of rising "inflation risks" for the first time in 8 years.
The report hinted that among the major economies around the world, there is a low inflation rate today only in China, compared to early 2020.
Across the world, high prices are considered a "recovery feature" in the era of the pandemic, while some central banks are focusing their efforts on fighting inflation.
The pandemic constitutes a "new era", since the 2008 global financial crisis, for global powers to try to control inflation, according to the report.
There are other factors that may contribute to higher prices in the future, including reduced competition, higher wages for workers in Chinese factories, and adaptation to policies to reduce carbon emissions, according to research conducted by the BlackRock Investment Institute.
Problems with faltering global supply chains, afflicting ports in Rotterdam, Shanghai and Los Angeles, are driving up costs around the world, and so are rising commodity prices.
The report also mentioned the rise in energy prices, and during the past year, international oil prices rose by more than 55 percent. The price of "nickel" used in the automotive and aerospace industries increased by 27 percent. The price of coffee has almost doubled.
In Europe, consumption has remained low, Lawrence Boone, chief economist at the Organization for Economic Co-operation and Development, said in a speech last week.
"The biggest driver of inflation in the eurozone is energy prices, and we all know the reasons that determine prices, which are the weather, the decline in gas reserves and reserves, the delay in maintenance in infrastructure, the lack of sufficient investments, especially in renewable energy sources, and the geopolitical impact of energy sources," Bonn explained. Gas, all things that cannot be resolved quickly."
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