Russian Invasion Expected to Keep Inflation High in Rich Countries - 09 iunie 2022

In the report released on Wednesday, the OECD said it now expects the global economy to grow by 3% in 2022 and 2.8% in 2023, having anticipated an increase in world output of 4.5% and 3.2% in those years respectively when it last released forecasts in December. Its forecasts are gloomier than those of the International Monetary Fund, which sees an expansion of 3.6% this year and next. The organization lowered its growth forecasts for the U.S. to 2.5% this year and 1.2% next year from 3.7% and 2.4% previously. Some Western economies could face periods of contraction this year if energy prices rise again, or interest-rate rises by central banks that are designed to contain inflation have unintended consequences, Ms. Boone said.

The OECD now estimates that consumer prices in its 38 member countries will rise at an average rate of 9% this year, double the inflation rate it expected to see in December. The pickup in inflation is especially large in a number of European countries. For the Netherlands, the OECD now sees annual inflation averaging 9.2% in 2022, having expected to see prices rise by 3.1% in December. For the U.K., the OECD now sees prices rising at an average annual rate of 8.8%, double the 4.4% increase it projected in December. By contrast, the expected pickup in U.S. inflation is much more modest. At the end of last year, the OECD expected annual average inflation to be 4.4%, and it now sees prices rising by 5.9%.

https://www.wsj.com/articles/russian-invasion-expected-to-double-inflation-rates-11654678800