Inflation round-up

Since our last inflation round-up in November, a lot of price indicators have eased around the world. Whether it's oil and gas indices sliding on the back of unseasonably warm weather in Europe or because of concerns about the global economy, warnings that fuel could soon become a deflationary force, a bumper wheat crop in Australia cutting food costs across Asia, or inflation falling sharply in the United States, France, Germany and the Netherlands, among others, most signs seem to suggest that price pressures have peaked.

However, we are not out of the woods yet. As our table below shows, the number of countries with double-digit inflation remains as high as it has ever been, even if many of the trends turned to falling this time when they had previously been rising. Indeed, for many countries, the cost of living continues to worsen at a rapid rate. In Egypt, for instance, eggs are so expensive now that they have become a luxury, according to the New York Times (paywall). Even countries used to stagnant prices are seeing significant inflation; Japan's hit a 41-year high of 4.0% in December. Furthermore, energy prices have begun to rise again, with some analysts predicting oil prices will soon return to $100/barrel, and while the war in Ukraine persists, as it looks like doing for a long time yet, and climate heating continues, inevitably, to cause such frequent extreme weather episodes, strong upward influences on prices are sure to remain.