WB said when global inflation will reach its peak
The World Bank (WB) expects inflation to peak in mid-2022 and then decline. But there is also a negative forecast: experts talk about the risk of stagflation, as in the 1970s, with details reported by RIA Novosti.
In its report, World Bank experts assure that inflation is projected to peak around mid-2022. Then it ‘will gradually decline as global growth slows, demand shifts from goods to services, supply chains improve, and commodity prices, including energy prices, decline’.
In the meantime, not everything is going smoothly with GDP. The World Bank points out that global GDP growth has slowed sharply since early 2022. It is likely to remain below the 2010s average. As far as inflation is concerned, it will likely remain above inflation targets in many economies. The reason is global supply disruptions. “These events raise concerns about stagflation: a period of both weak growth and high inflation, similar to what happened in the 1970s,” WB experts warned.
However, according to the bank, researchers disagree when comparing the current situation in the global economy with that in the 1970s. Some of them suggest that the experience gained in fighting inflation since the last decades of the 20th century will help prevent stagflation. The World Bank indicates that inflation rose to 10.3 percent in 1973 when oil prices surged. Inflation remained high until the 1982 recession.
The reports of rising inflation rates to record levels for decades in Western countries have recently been quite common. This has already affected the lives of ordinary citizens, and in the near future the situation is unlikely to change for the better. Employees of the Italian National Institute of Statistics, e.g., warned that the country expects a further increase in inflation, and if the situation does not improve, things could reach a recession.
