A new study from the Pew research center shows that 39 of 46 countries surveyed had a higher inflation rate in 3Q21 than in 3Q20. The United States had the third highest change in inflation rate year-over-year in October with 3.58% additional inflation to reach 6.2% in October.
“Explanations for the current phenomenon proffered to date include continuing disruptions in global supply chains amid the coronavirus pandemic; turmoil in the labor markets; the fact that today’s prices are being measured against prices during last year’s COVID-19-induced shutdowns; and strong consumer demand after local economies were reopened,” notes the report’s author Drew DeSilver.
Turkey and Brazil, which registered approximately 6% growth in inflation between 3Q20 and 3Q21, registered the highest growth in inflation rates.
The Pew survey notes a similar pattern in many of the countries suffering inflation: first relatively low inflation before the COVID-19 pandemic, flat or falling inflation for the rest of 2020 and into 2021 and rising inflation in the second and third quarters of 2021 as demand returned.
The world’s highest inflation rate was in Argentina with 52%.
By Feike de Jong