Global economic recovery is at risk as inflation rates continue to rise across the board. The latest data shows that inflation in the United States has reached a 13-year high, with consumer prices surging by 5% in May compared to the previous year. In the Eurozone, inflation has also spiked to 2% in May, surpassing the European Central Bank’s target of just under 2%. Meanwhile, the United Kingdom is facing its highest inflation rate in two years, with prices increasing by 2.1% in the 12 months to May. Economists are concerned that the combination of supply chain disruptions, rising commodity prices, and pent-up consumer demand could lead to a sustained period of high inflation.Central banks are closely monitoring the situation and are considering tightening monetary policy to combat rising inflation. However, any premature or aggressive moves could derail the fragile economic recovery. Investors are cautious as they await further guidance from central banks on their future policy actions.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
