Rising Inflation: A Global Outlook

Inflation is on the rise globally with some countries such as Turkey seeing a record numbers.

• Just as the world was recovering from two years of debilitating pandemic, the Russia-Ukraine war has thrown any hopes of recovery under the bus, raising inflation across the board.
• Inflation was present to some extent, but the war has definitely spiked the prices of food and fuel due to supply chain issues. Food protectionism by countries is also making matters worse.
• According to a latest FitchRatings report, the lockdown in Shanghai is expected to exacerbate supply chain pressures and raise inflation concerns further.
• While the UK, US and EU countries are seeing single-digit inflation, in Turkey inflation has hit nearly 70% in April amid skyrocketing prices thanks to President Recep Edogan’s economic policies.
• The Turkish Lira has already lost 44% of its value against the US dollar making energy imports expensive and forcing foreign investors to flee the country.