Why is inflation hitting majority of the countries worldwide seemingly at the same time?
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In no small part, the pandemic *ending*. Tons of people went back to work, pretty quickly – definitely quicker than global supply chains recovered. Suddenly more people earning money, without the supply to respond, raised prices for just about everything. The war in Ukraine also increased the cost of oil, which is not just your gas station but something that every company in the world buys.
Supply chains have recovered, but companies have a habit of not reducing inflation on their own – if they paid 10% inflated prices for all their supplies last year, they’ll raise their own prices 10% next year. Generally, it takes a temporary *recession* to reduce the inflation rate. At least, according to macroeconomic theory and recent history. Every company *could* all agree to reduce their prices and bring inflation back down, but… who wants to do that? they’re making money.
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