Inflation has returned with a vengeance to the world.
After being very low by historical standards for several decades, the inflation rate is rising faster and more strongly than expected.
According to estimates, the average inflation rate in the world this year could reach 8 percent.
Inflation in August was 9.1 percent in the euro zone, 9.9 percent in the UK and 8.3 percent in the United States.
Hopes that the rate of inflation would quickly move back towards the 2 percent target of many central banks have been disappointed.
Inflation threatens to become a persistent phenomenon.
Gerald Braunberger
Editor.
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As was the case half a century ago, the price of important raw materials accelerated by war and other upheavals.
At that time, the Vietnam War sowed the seeds of inflation, the subsequent oil shocks after the Yom Kippur War and the Iranian revolution acted as a fire accelerator.
In our time, the pandemic and the Ukraine war have caused energy and other scarce raw materials and supplies to become significantly more expensive.