The economic forecast by the Reserve Bank is expecting inflation to reach 6 percent by the end of the year, almost double the previous estimate of 3.25%, inflation is emerging as a top economic challenge for 2022 and beyond.
Everything from rent to the cost of a car is set to rise further, partly driven by the pandemic, increased fuel costs, higher dwelling construction costs, supply chain disruptions, and general costs for goods and services.
The RBA stated inflation increased faster than expected due to global supply disruptions and strong demand. It is expected both metrics to recalibrate to 3 percent by mid-2024. Unemployment is also predicted to drop to 3.25 percent by the end of the year.
Worldwide inflation is also increasing rapidly affecting living standards in many countries. According to US analysts’ estimates of a 40-year high at 7.5%. are being predicted.
Italy has major challenges as its energy supply is affected. Italians have been struggling with the cost of utilities which have risen by more than 50% this past winter. Italy is highly dependent on energy imports.
In Pakistan, inflation is running at 13% causing a rapid devaluing of the rupee. Leaving families struggling to cope as food costs skyrocket.
Globally inflation is affecting many countries, people’s living standards, and businesses.
