Hyper Inflation!! Graph Rises Higher Than Ever

Inflation has been risen higher than ever all over the world, decades record have been broken. Covid, Russia-Ukraine war and natural disasters are one of the biggest factors affecting it. Hyper inflation has  shaken the governments of  many countries now and chances are high that many countries will face great depression in upcoming time, this layer of inflation will continue till next year. Top global newspapers including Forbes, Bloomberg, Financial Times, Guardian, CNBC and Livemint have published their detailed reports on inflation. According to British newspaper " The Guardian ", Inflation rate has been increased by 9.1% in Euro Zone consisting of 19 countries. European Central Bank is facing new pressure to increase the rate again with hefty numbers next week. As per the Statistics Bureau of European Commission, the increased rate in July was more than 8.9%, which was the highest in 23 year history of Euro. Due to the Russian attack on Ukraine the fuel prices have reached their peaks in Europe and fertilizers and other agricultural products like wheat's price have also been increased there. The latest increment in the prices of food and power will just raise the crisis which has affected the families and businesses of 19 countries block. ECB increased the rates by 0.75% on Thursday. Economists are expecting the further rise of inflation, Gas crisis increases the danger of great depression in inflation affected Euro Zone. Guardian writes that England is moving towards great depression because inflation is reaching new heights here and Euro has dropped its value to the lowest in comparison to US Dollar. The fear of long lasting state depression and increased public expenses in order to cop up with the living crisis is forcing UK to implement the highest ever monthly increase in 40 years on loan interest rate. 10 year bonds, benchmark are going towards the lowest ever since 1986 on monthly basis. According to another report, UK is most affected by the inflation among all the G-7 countries. This rate of more than ten percent is highest in past 40 years and it has passed this threshold four times in last b70 years. Petrol prices rises by 45% and food by 40%. City Bank warns that by the increased electricity bills inflation rate will reach the new mark of 18%. Which will be the highest in past 50 years. 

Indian media reports that International rating agency Moodies have taken down their prediction of Indian GDP growth from 8.8 to 7.7% in  2022. And obviously the main reason for it is the increased inflation rate. Forbes writes that prices of everything have been by 8.5% as compared to the last year. From food items to fuel products everything's prices have been increased. Not only America this new layer of inflation is affecting whole word. In ever country and in every region, the inflation system is devious. Government policies, financial and financial intervention, change in interest rate and even climate can also increase inflation. Power and fuel expenses are also the major cause of hyper inflation in many countries. In England supply chain issues due to extreme cold weather and less than routine availability of power from air has caused the rapid increase in prices. Inflation rate was 8.5% in US in July which was quite better numbers than 9,1% in June which had been the highest ever there in 40 years. Eggs prices has raised by 14.6%, milk by 34% and natural gas by 95.7%. In Canada, inflation rate has reached to 7.6% which was 8.1% before which had been highest yearly increase since 1983. In China inflation rate has reached to 2.7%. In comparison with last year, food prices has raised by 6.3% and fuel by 24%. In Japan, Inflation rate was 2.6% in July which is higher than the 2.4% rate of June. This is continuous 11th month of increasing prices in Japan. The main reason is increased fuel and food prices and their shortage after Russia-Ukraine war. Inflation rate has increased by 79.6% in Turkey in July which is the highest ever in past 24 years. Apart from Ukraine war, the decline in Turkish Lira since December 21 is another major cause of it there. Their declining currency and increased prices of everything has affected them so much that the Turkish government has to risen the minimum wage twice by the start of this year.

 Australia faced the increase in inflation rate by 6.1% in June as compared to last year. Many African nations are experiencing this hyper inflation. It has been raised to the highest in last 13 years by 7.8% in South Africa. And obviously the major causes are increased fuel and food prices. 

What is the root cause behind global hyper inflation? Analysts are giving several explanations in this matter. Covid had important relation with increased inflation. At first the economy was closed and when it was re-opened than many countries faced the issue of labor sourcing and obstacles in supply chain and other kind of challenges like that which increased the demands and caused a decrease in supply. When economies started to work again and consumers were ready to spent. To fulfil this requirement labor market had to increase, Although many people were still worried about covid and were not ready to rejoin the work.