A few factors explain what is going on. Total fiscal stimulus across Anglophone countries in 2020-21 was about 40% more generous than in other rich places, according to our estimates. It was also more focused on handouts to households . That may have stoked demand to a greater extent. Monetary policy in the euro area and Japan was already ultra-loose before the pandemic, limiting the amount of extra stimulus central banks could provide.
The simplest component of our ranking is the rate of “core” inflation. This measure gives a better sense of underlying price pressure. Among our ten countries, America leads the pack . A second measure, of dispersion, helps capture how broadly based price pressures are. A country where headline inflation is being driven by one or two items—say, the cost of a restaurant meal—is in less trouble than a country where the price of everything is going up quickly. To measure this we divide each country’s consumer-goods basket into as many as 16 components, then calculate the share where the inflation rate exceeds 2%. In Japan just a quarter cross that threshold.
Inflation could also spiral if workers demand higher wages to compensate them for rising prices . Unit labour costs, which measure the relationship between what workers are paid and the value of what they produce, are rising far faster than their long-run average in many countries. On May 5th America’s statisticians revealed that these rose by 7% in the first quarter, compared with a year ago, up from a pre-pandemic average of around 2%.
by researchers at the Federal Reserve Bank of Cleveland, Morning Consult, a consultancy, and Raphael Schoenle of Brandeis University, is a rare reliable cross-country gauge of public inflation expectations. In May 2021 a respondent in the median rich country thought inflation over the next 12 months would be 2.3%. Now they expect a rate of 4.5%; Canadians, an even higher 6%. A measure of Google searches for inflation reaches a similar conclusion.
I wish media would be honest and do more 'research' than just calling price increases 'inflation' when so many companies are making record profits and still raising prices. This is pure greed and profiteering, not inflation due to rising production costs.
Looking at chinas 1.5% inflation it seems to me that they are doing quite right. Not printing money like crazy.
美国真是祸乱全球来收割利益。
What about salary?
Can't put a price on sovereignty.
No... really Who could have possibly predicted this
Inflation is the product of any growth economy. Consumption causes supply to fall. Prices rise. Third grade math.
nothing to do with it... the 'economist' ... printing money since 2008 through qe might be a better bet.. but hey .. you guys are just rag propaganda
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