Friday, July 22, 2022

Global Inflation

 "Unprecedented price surges mean that for many people across the world, the food that they could afford yesterday is no longer attainable today," said Achim Steiner, head of the United Nations Development Programme, in a statement"This cost-of-living crisis is tipping millions of people into poverty and even starvation at breathtaking speed and with that, the threat of increased social unrest grows by the day."

People around the world are facing increasing pressures on their day-to-day lives. 

According to the United Nations, more than 70 million people in developing countries have been pushed into poverty in the three months since March due to the spike in food, fuel and fertilizer prices.

Even in richer nations, household budgets are feeling the squeeze. In May, the World Economic Forum found one in four people were struggling financially across 11 developed countries.

A Civil Unrest Index by data analytics firm Verisk found 75 countries will likely see protests this year.

Almost half of Haitians are short of food, with hunger set to worsen with inflation at 26%.

Pakistan is facing a deepening economic crisis with inflation surging to 21.3% in June. Fuel prices have risen by about 90% since May after the government scrapped subsidies in a bid to cut its surging deficit and resume an International Monetary Fund (IMF) bailout programme. At the end of June, Pakistan's central bank held only enough reserves for roughly six weeks of required imports.

Argentina is grappling with inflation at more than 60%, and spiking gas import costs. It struck a $45 billion debt deal with the IMF earlier this year, but many Argentines believe it will lead to a rise in poverty and have taken to the streets to demand its rollback.

Tunisia has seen inflation hit a record 8.1%. This has prompted protests - including a nationwide strike in June by the largest trade union which opposes government plans to freeze wages and cut subsidies as part of the deal to secure the $4 billion loan from the IMF.

In Kenya, inflation is running at a five-year high of nearly 8%, driven by jumps in the price of staples such as wheat flour, cooking oil and petrol. Kenya is also facing the worst drought in more than 40 years, creating widespread hunger and leaving it even more dependent on costly imports.

Inflation is triggering chaos worldwide. Where are the hotspots? (

No comments: