Will surprisingly high global inflation last?
Don’t panic. But keep a watchful eye
Editor’s note: On July 13th 2021, after this article was published, new data showed that America’s consumer price inflation rose to 5.4% in June, well above economists’ expectations. On July 14th it was revealed that British inflation rose to 2.5% in June, which was also higher than forecast.
IN JANUARY AN inhabitant of a midwestern city—Cleveland, say—could buy a three-year-old Toyota Camry for about $18,000 and fill up its 60 litre petrol tank for about $28. By May, the car would have cost them 22% more and the 16 gallons of gas 27% more. As the American economy has risen from its pandemic slumber, the prices of durable goods and commodities have soared.
This article appeared in the Briefing section of the print edition under the headline "Boom and doom?"
From the July 10th 2021 edition
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