It is difficult for the United States to curb high inflation. Europe, Australia and India have made this choice!

The global economic outlook recently released by the world bank emphasizes that the downward adjustment of global economic growth expectations is accompanied by the risk of stagflation. The report points out that under the background of soaring food and energy prices, rebounding demand and persistent supply chain bottlenecks, the market expects global inflation to peak in mid-2022, but still remain high. The report predicts that the global economic growth in the next few years will remain below the average level of 2010-2020. The global economy may enter a period of long-term weak growth and high inflation.
The United Nations reports that the world is facing the most serious cost of living crisis since the 21st century. The UN global food, energy and financial crisis response team released a report on June 8 that the world is facing the most serious cost of living crisis since the 21st century due to factors such as the conflict in Ukraine. To meet the challenges, it is necessary to improve the crisis response capacity of all countries and peoples. The FAO food price index is now close to the highest point in history, 20.8% higher than the same period last year; The overall energy price in 2022 is expected to rise by 50% over last year due to concerns that the conflict between Russia and Ukraine will drag on for a long time and the energy market will fluctuate more severely; The price of chemical fertilizer has doubled compared with the average level from 2000 to 2020; The shipping price is three times higher than that before the COVID-19. In addition, the rise of interest rates and investors' hesitation have led to the devaluation of currencies of developing countries and the decline of international lending capacity.
On June 7, the Central Bank of Australia announced another interest rate hike, raising the benchmark interest rate by 50 basis points to 0.85%, while continuing to raise the foreign exchange settlement balance interest rate by 50 basis points to 0.75% from 0.25%. Since the outbreak of the epidemic, the Central Bank of Australia has cut interest rates three times, reducing the interest rate to a historical low of 0.1%. However, the recent rise in domestic inflation in Australia has forced the central bank to raise interest rates continuously for two months. Philip Lowe, governor of the Australian central bank, said that the resilience of the Australian economy and its inflation level showed that unconventional support policies were no longer needed.
The Bank of India announced on June 8 that it would raise the benchmark interest rate by 50 basis points to 4.9%. This is the second time this year that the Central Bank of India has raised interest rates after raising interest rates by 40 basis points in May. The decision of the Bank of India was in line with market expectations. India's inflation rate has exceeded the upper limit of the medium-term inflation target of 6% set by the Central Bank of India for four consecutive months. In April, India's consumer price index rose by 7.79%, the highest level in the past eight years. The increase in inflation in India is mainly caused by the rise in international commodity prices. In order to curb inflation, the Central Bank of India raised the benchmark interest rate, and the Indian Ministry of finance has also taken measures for many times, such as cutting the fuel consumption tax, lowering the import tariff of edible oil, etc.
The European Central Bank plans to raise interest rates by 25 basis points in July. The European Central Bank announced on June 9 that it plans to raise interest rates by 25 basis points in July and stop net asset purchases from July 1. At present, the main refinancing interest rate, marginal lending interest rate and deposit mechanism interest rate of the European Central Bank are maintained at 0.00%, 0.25% and negative 0.50% respectively. According to the decision, the European Central Bank is expected to raise interest rates again in September. If the medium-term inflation outlook continues or worsens, it will appropriately increase the range of interest rate hikes.
The Russian central bank cut its benchmark interest rate to 9.5%. The Central Bank of Russia announced on June 10 that it would cut the benchmark interest rate by 150 basis points to 9.5%. The Central Bank of Russia said in a statement that the external environment of the Russian economy is still full of challenges. At the same time, Russian inflation accelerated and slowed down, and the economic situation was better than previously expected. Data show that Russia's domestic price growth slowed down in May and early June. At the end of February this year, the Russian Central Bank significantly raised the benchmark interest rate to 20%. On April 8, the Central Bank of Russia lowered the benchmark interest rate to 17%, at the end of April to 14% and on May 26 to 11%.
According to the data released by the U.S. Department of labor on June 10, the U.S. consumer price index (CPI) rose 1% month on month and 8.6% year-on-year in May. The year-on-year increase has been above 8% for three consecutive months, and reached the highest value since December 1981. Although the Federal Reserve has started the cycle of tightening monetary policy and said that it will take a quick step in raising interest rates and "shrinking the table", the most serious inflation in 40 years has not yet eased. Economists believe that the continued high inflation has brought great pressure to the Federal Reserve, making it increasingly difficult for the Federal Reserve to "walk the tightrope" in its policies. At the same time, the risk of economic recession in the United States has intensified. Some economists previously believed that US inflation may have "peaked" in March, but the latest data show that this view is untenable.
Source: International Business Daily
In this article, except for the pictures indicating the source, the rest are from open online channels, and their source cannot be identified. If there is a copyright dispute, please contact our company.