Why is Inflation Happening All Over the World At Once?

[Sithara007]

I am actually wondering why the inflation is still within tolerable limits. Here in India, it is still in single digits. If you remember, back in 2020-21 during the COVID period, a lot of countries used that excuse to print unlimited amounts of banknotes. The M1 monetary supply suddenly went up by 3x or 4x in most of the countries. Given this, I was expecting inflation to shot up to at least in double digits. But somehow the excess supply of money seems to have vanished from the economy. I don't know where it went, but inflation seems to be under control now.

[Iroh]

Because today countries are much more tied to each other through trade than they were in the past. If one major country is in the crisis, it can't buy as much goods from other countries, so they enter a crisis too. Plus we're still living in post-covid times, and all governments responded to covid by increasing spending, which is one of the biggest causes of inflation.

I quite agree with you. Today, countries of the earth are closely aligned with and dependent on each other for either resources and or energy. And when one major supplier of this energy or resources goes into a crisis, the countries heavily dependent on it would also go into a crisis.

Also, poor economic policies of a lot of countries would in the long run add to the economic problems rocking the country. The government response to the aftermath of the covid pandemic too probably has a part to play as to increase spending, more money needed to be printed and more money in circulation in the economy equals high inflation.

[Cryptomultiplier]

From the headlines, I think most of these countries are closely affected by the Russian/Ukraine war ongoing. Food shortage and low export/import rate has been the news coming out of that region. There is also the talks of the cost of gas across that region. No wonder other sectors and nation's around are suddenly affected by trying to adjust their prices.
Although, some countries are taking advantage or trying out new policies to see how best to checkmate prices and balance with their deficit  from budgets.
All these talk of inflation even started after the COVID -19 elapsed. It is more as a result of the rippling effect of world curfew.

[tabas]

I am actually wondering why the inflation is still within tolerable limits. Here in India, it is still in single digits. If you remember, back in 2020-21 during the COVID period, a lot of countries used that excuse to print unlimited amounts of banknotes. The M1 monetary supply suddenly went up by 3x or 4x in most of the countries. Given this, I was expecting inflation to shot up to at least in double digits. But somehow the excess supply of money seems to have vanished from the economy. I don't know where it went, but inflation seems to be under control now.

In some countries, first world countries, I've seen the numbers of their inflation to be in double digits and that's not really surprising at all. And for those countries that has managed to keep it on a single digit then it only shows and good to assume that something good is happening lies in their economy. It's hard to tell if those numbers are being projected by the government itself. In the coming months, I'm also expecting that the inflation rate is going to be lesser and I guess we've just came from its all time high and managed to survived it. Still, I do get a lot of goods noticeably skyrocketed on its price and that had made my pocket so tight.

[tiCeR]

Humanity has colonized the entire planet Earth.  This led to the fact that the whole world became one.  This is called globalization.  

Meanwhile, this was not always the case.  

For example, in 1933 there was the Great Depression in the USA, the closure of factories and industries, mass unemployment.  In the USSR at the same time there was an economic boom.  The five-year plan for the development of the country was successfully implemented (moreover, the plan was completed ahead of schedule - in three years).  

The modern world economy is based on a deflationary US dollar and interest on loans.

Under these conditions, high world inflation is inevitable.

The modern world economy is based on a deflationary? US dollar? I am sure you meant to say the opposite, but anyway yes you are right that the hyper connected world is impacted when a crisis happens in one of the global centers for finance and trade or in a place where the world is dependent on for sufficient supplies in resources (Ukraine + Russia).

But there are still countries that manage to keep their inflation under control through smart monetary rules and policies. But there are also circumstances that due to its nature can either be more or less influenced by the government. Whenever it comes to monetary unions, as soon as the central bank makes mistakes or conducts bad policies, the entire union is inevitably affected automatically. The difference in the impact then results from the level of national debt and that is indeed a factor that distinguishes countries from one another in the European Union for example.

Trade and logistics have a major impact as well. If logistics are interrupted or even fully discontinued temporarily, prices for goods that do not reach their destination will go up as they become scarce due to external events.

[EFS]

I am actually wondering why the inflation is still within tolerable limits. Here in India, it is still in single digits. If you remember, back in 2020-21 during the COVID period, a lot of countries used that excuse to print unlimited amounts of banknotes. The M1 monetary supply suddenly went up by 3x or 4x in most of the countries. Given this, I was expecting inflation to shot up to at least in double digits. But somehow the excess supply of money seems to have vanished from the economy. I don't know where it went, but inflation seems to be under control now.

That looks acceptable to me. Do you trust sources for these numbers? I ask this because in Türkiye there is a general belief that official sources explain inflation low. That's why independent companies do their own research and the inflation rate is actually much higher. Last year there was inflation in the 3-digit numbers. Although there is inflation all over the world, Türkiye has one of the highest inflation rates. This is something that can't be explained by the pandemic alone, the effect of bad economic policies on this is huge. There will also be an election this year. I'm curious about the results and the effect on the economy.

[blockman]

I quite agree with you. Today, countries of the earth are closely aligned with and dependent on each other for either resources and or energy. And when one major supplier of this energy or resources goes into a crisis, the countries heavily dependent on it would also go into a crisis.

In short, its world trade. Each other has the other countries' back for their trade. That's about goods and even in services, there's a world trade on it and that's why the rotation goes on for each country's economy.

Also, poor economic policies of a lot of countries would in the long run add to the economic problems rocking the country. The government response to the aftermath of the covid pandemic too probably has a part to play as to increase spending, more money needed to be printed and more money in circulation in the economy equals high inflation.

It was a domino effect and when small and poor countries saw what the USA did about printing money, they've also come up with that idea that they should also print money and will just deal with the effect of it afterwards and that's what we're dealing with now, inflation.

[Sithara007]

That looks acceptable to me. Do you trust sources for these numbers? I ask this because in Türkiye there is a general belief that official sources explain inflation low. That's why independent companies do their own research and the inflation rate is actually much higher. Last year there was inflation in the 3-digit numbers. Although there is inflation all over the world, Türkiye has one of the highest inflation rates. This is something that can't be explained by the pandemic alone, the effect of bad economic policies on this is huge. There will also be an election this year. I'm curious about the results and the effect on the economy.

Regarding the trustworthiness of the monetary supply, I would rather consider them as reliable, as the numbers are published by the central banks. And regarding inflation, whatever data the government publishes seems to match with what I am witnessing at ground level. As per official data, inflation rate here in India right now is somewhere between 6% and 7%. And it looks accurate, when I cross-match the price levels of various commodities and services. That said, I don't have any information on how reliable the official numbers are for countries such as Türkiye.

[rby]

I am actually wondering why the inflation is still within tolerable limits. Here in India, it is still in single digits. If you remember, back in 2020-21 during the COVID period, a lot of countries used that excuse to print unlimited amounts of banknotes. The M1 monetary supply suddenly went up by 3x or 4x in most of the countries. Given this, I was expecting inflation to shot up to at least in double digits. But somehow the excess supply of money seems to have vanished from the economy. I don't know where it went, but inflation seems to be under control now.

That looks acceptable to me. Do you trust sources for these numbers? I ask this because in Türkiye there is a general belief that official sources explain inflation low. That's why independent companies do their own research and the inflation rate is actually much higher. Last year there was inflation in the 3-digit numbers. Although there is inflation all over the world, Türkiye has one of the highest inflation rates. This is something that can't be explained by the pandemic alone, the effect of bad economic policies on this is huge. There will also be an election this year. I'm curious about the results and the effect on the economy.

The non independent companies are often influenced in their analysis  and journalism. The government media is the government and they collaborate to feed you with filtered and altered information that will control your emotion and mindset.
When the inflation is in 3 digits and information is released that it's in 1 digit.  You wouldn't know, while you will feel the impact of 3 digits, you will feel 1 digit.  That is the power of manipulation.

[Gayong88]

Inflation can be devastating to any economy. It also affects everyone differently and occurs for many different reasons. For example, an increase in unemployment might cause inflation because as companies lay off workers, they have to increase wages so they can stay competitive.

For an economy to collapse, many things have to go wrong at once. Communications between people and banks are crucial as information needs to travel quickly.  It's true that what goes on in one country or continent affects the others and it's also true that when one economy collapses, everything follows suit.

Despite all of this, it's important to remember that a weak economy doesn't necessarily mean a significantly weaker dollar. The U.S. may be going through tough economic times right now, but that doesn't automatically mean the dollar's value is going to suffer as a result—we could very well see inflation here in the States while a country like China experiences deflation. Ultimately, it's tough to predict what will happen with the U.S. dollar at any given time.

[jrrsparkles]

The answer is simple, every country printed lot of money in 2020 to keep their economy alive while there is worldwide lockdown so now the results are coming due to that excess money in the circulation. Also another reason is war between Russia and Ukraine affected the economy all around the world, increased the cost of fuel so people lost their spending power now feeling the loss to the value for the money they own.

[Ayers]

Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics? Here's what I mean from these news headline

- Major fears are sweeping into Israel’s economy

- Stubborn inflation will remain at a very high level, German central bank president says


- Saudi Arabia drops $5 billion in Turkey’s central bank to help its struggling economy

- U.S. inflation is likely ‘far stickier’ and could last a decade, Bill Smead says


- Inflation resurges to 21.82 % over rising food prices

- Sky-high prices burn Indians’ pockets, drag savings to 30-year low amid K-shaped recovery

Mostly due to Russo-Ukrainian war I guess. Germany has issues due to increasing energy prices, US has issues because it's spending billions on military support of Ukraine. Turkey's economy was ruined even before the pandemic started. Can't comment on Israel and India I have no idea what's going on there. 

Inflation is also a part of the world economy, and it has been repeated many times in the past and will continue to happen in the future. I believe that if there is no pandemic, no inflation war, inflation will still happen. Pandemics and wars are just catalysts for inflation to come faster and hit harder. Today's world is an interconnected chain that needs to rely on each other to coexist and develop, so if supply and demand are disrupted, it will cause chaos throughout the chain. Inflation is inevitable, we need to be better prepared for the next inflationary period.

[Inwestour]

The answer is simple, every country printed lot of money in 2020 to keep their economy alive while there is worldwide lockdown so now the results are coming due to that excess money in the circulation. Also another reason is war between Russia and Ukraine affected the economy all around the world, increased the cost of fuel so people lost their spending power now feeling the loss to the value for the money they own.

Even during the global pandemic, there was talk that the consequences of this would be very tangible for many countries. I'm not sure if this has affected the whole world, in my opinion the Scandinavian countries did not succumb to this panic very much and they did not have such significant restrictions. Therefore, their position and economy is in a much better condition.

They did not follow everyone else, did not succumb to the herd principle, but decided to make decisions on their own, to some extent I support this approach, as we see it was right.

But besides the pandemic, there are a number of significant reasons that affect the global economy. In any case, it is also cyclical, after a period of development, there is always a decline.

[19Nov16]

Inflation is a classic problem that will continue to happen and be repeated, unfortunately many countries still use traditional methods so that inflation continues to occur, inflation occurs globally because the global financial system is almost the same, namely using paper, if we can go back to the old days when using gold and silver then there will never be inflation again, unfortunately many countries seem to use inflation to keep poverty.

[GreenStox]

I guess because all currencies are interconnected, I mean even a country's currency has value against another country's currency.
so it's like competing to be the best.
that is why if a currency like the USD experiences a decrease or increase it will have an impact on other currencies.

[Maxre]

Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics? Here's what I mean from these news headline

- Major fears are sweeping into Israel’s economy

- Stubborn inflation will remain at a very high level, German central bank president says


- Saudi Arabia drops $5 billion in Turkey’s central bank to help its struggling economy

- U.S. inflation is likely ‘far stickier’ and could last a decade, Bill Smead says


- Inflation resurges to 21.82 % over rising food prices

- Sky-high prices burn Indians’ pockets, drag savings to 30-year low amid K-shaped recovery

As far as I am concerned, I think that that is because of COVID-19 virus that made people conditions worse and in future it may impact more..
And I can see that there are some natural Disasters than we have ever seen. And Like Earthquake In Turkey, Wars like In Afghanistan, Yemen, Iraq and also Floods like In Pakistan and that was disaster for the Third Wolrd countries and that is concerning and insane too.

[Ozero]

Not a single, even the most powerful state can now produce all the variety of products that both the state mechanism itself needs for its normal work, and the citizens of this country. Therefore, all countries are forced to exchange their products through trade transactions. If cataclysms periodically occur in one region, this entails consequences in other regions, since the established supply chain of products is disrupted. We can now see this in the example of the war unleashed by Russia in Ukraine.
Moreover, for the past few years, the coronavirus pandemic has raged in the world and all states, without exception, have been forced to spend colossal sums of money to fight it and suffer large material losses. All this affects the growth of inflation, its growth was predicted several years ago, when the coronavirus was just beginning to spread around the world.

[puloweh555]

In my personal opinion, as long as a country or whatever is in debt to the IMF/World Bank, inflation will continue to get to a critical point, right now the debts of all countries in the world are enormous and impossible to pay off. The situation will improve if the world bank is willing to forgive all countries' debts or there is a great reset and maybe a new currency replaces paper money.

The whole World has been ensnared in this degenerate system and will not be able to get out, Bill Gates, Jeff Bezos, Elon Musk are just a speck of dust compared to the people behind this system, they can create a world crisis in just a matter of hours. Please correct if I'm wrong.

[Cryptock]

Why does inflation in one country or continent affect the others. Why does it seem like the whole world is experiencing a global economic downturn all at once despite having different economies, different policies, different politics? Here's what I mean from these news headline

- Major fears are sweeping into Israel’s economy

- Stubborn inflation will remain at a very high level, German central bank president says


- Saudi Arabia drops $5 billion in Turkey’s central bank to help its struggling economy

- U.S. inflation is likely ‘far stickier’ and could last a decade, Bill Smead says


- Inflation resurges to 21.82 % over rising food prices

- Sky-high prices burn Indians’ pockets, drag savings to 30-year low amid K-shaped recovery

The point you have mentioned about Turkey aid - isn't it recently when after the earthquake Saudi helped Turkiya?
However inflation is happening after the Ukraine war - Its the price of oil and gas which has affected the inflation since all the prices are attached to the transportation.

[Pejoh Asu]

I think the thing that makes an economic impact can happen simultaneously around the world because of a chain or attachment between one another, as we know that no country can fulfill its own needs, so it will work together to bring in raw materials or to sell production, Naturally, if there is a problem with one country, many developed countries are trying to provide assistance so that it does not have a widespread impact.