Equity, Diversity and Inclusion

"Under pressure": This is why global inflation is incredibly high

Flags from different nations on poles

Oil futures contracts indicate crude prices will rise about 12 percent this year as natural gas prices climb about 58 percent Image: Unsplash/Vladislav Klapin

Jorge Alvarez
Our Impact
What's the World Economic Forum doing to accelerate action on Equity, Diversity and Inclusion?
The Big Picture
Explore and monitor how Inequality is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
Stay up to date:


  • Surging energy and food costs have boosted inflation.
  • Supply chain disruptions, clogged ports, logistic strains and strong demand for merchandise has increased the pressure on prices.
  • According to our January World Economic Outlook Update, inflation is likely to remain elevated, before subsiding next year.

The chart of the week shows how surging energy costs have boosted inflation, especially in Europe, after fossil-fuel prices nearly doubled in the past year. Rising food prices have also helped to boost inflation.


Beyond GDP: read the full transcript here

A bar chart showing global price pressures
Surging energy prices has been having a strong impact on global inflation Image: IMFBlog/IMF, Haver Analytics; and IMF staff calculations

Meanwhile, continuing supply chain disruptions, clogged ports, logistics strains and strong demand for merchandise have broadened these price pressures, especially in the United States. Higher imported goods prices have contributed to inflation in some regions, including Latin America and the Caribbean.

Inflation is likely to remain elevated. Price gains this year will average 3.9 percent in advanced economies and 5.9 percent in emerging market and developing economies, before subsiding next year, according to our January World Economic Outlook update.

Assuming inflation expectations remain well-anchored and the pandemic eventually eases its grip, higher inflation should fade as supply chain woes ease, central banks raise interest rates, and demand tilts more toward services again instead of goods-intensive consumption.

Oil futures contracts indicate crude prices will rise about 12 percent this year as natural gas prices climb about 58 percent. Such increases for both commodities would be considerably less than their gains last year, and would likely be followed by falling prices in 2023 as supply-demand imbalances ease further.

Have you read?

Similarly, food prices are likely to climb at a more moderate pace of about 4.5 percent this year and decline next year—after a rise of 23.1 percent last year, according to the United Nations Food and Agriculture Organization. This should ease spending pressures for millions of people around the world, especially in countries with lower incomes.

Such burdens fall most heavily on residents of emerging and low-income nations, where food typically makes up a third to half of consumer spending. That share is smaller in advanced economies, such as the United States, where food accounts for less than one-seventh of household shopping bills.

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

Investing in people at AMNC24

Gayle Markovitz

June 23, 2024

About Us



Partners & Members

  • Join Us

Language Editions

Privacy Policy & Terms of Service

© 2024 World Economic Forum