Inflation starting to slow in U.S., while other countries face higher costs
In response to T.J. Klotzbach’s letter posted on Nov. 12, yes, US consumers are dealing with inflation. Many of us don’t consider the global effects of inflation and how it his different in many parts of the world.
It’s not just the U.S. suffering from high inflation food and energy costs at all-time highs. Countries worldwide are suffering higher than average inflation. Recent Consumer Price Index (CPI) numbers show variations of inflation worldwide: Saudi Arabia 95%; Indonesia 81%; Turkey 80%; Argentina 78.5%; Russia 14.3%; UK, Sweden, Denmark, Mexico, Brazil, Peru 10%; Thailand 7.9%; U.S. 7.7%; Canada 7.6% Australia 6.1%; S Korea 5.7%; Japan, Taiwan, China 2.5-2.7%.
Russia’s invasion of Ukraine has escalated inflation by increasing prices of everything from energy to wheat. Some is the result of Covid-19 and supply chain issues; higher wages and stimulus money here triggered strong consumer demand. As households around the world have struggled with rising energy bills the profits of the worlds’ leading oil giants have surged; the numbers are stunning.
The Federal Reserve has been raising interest rates here and worldwide banks have done similar things to reduce inflation. It takes time for interest rate hikes to kick in. According to The International Money Fund the global surge in consumer prices may be close to the high point of the current cycle, but might yet prove stubborn. US inflation has come down some and economists have estimated that we have already reached peak.
Yes, I agree there is inflation inequality in the US and higher-income households can handle inflation easier than for low-income households. I am a food pantry volunteer and suggest that people use the support available, even if the need is temporary.
You say that an informed electorate is a powerful force, I agree. You say voters and consumers need to make savvy informed decisions that consider multiple issues such as inflation.
Let’s make informed careful choices as we select more energy-efficient vehicles, nutritious foods and the environmental impact of decisions and vote. We must look beyond our own immediate needs, unlike selfish oil corporations. Nationally, the informed electorate has spoken.