Global inflation rates have soared as a consequence of the ongoing coronavirus COVID-19 global pandemic. Both the UK and US have reported high inflation increases this year in comparison to last. The Labor Department in the US reported recently that April 202 had seen the fastest increase in 12 years. This was due to the economic recovery from the coronavirus crisis that has pushed food, energy and fuel prices higher than usual.
Inflation has been previously down as lockdown restrictions in many places as a result of the pandemic had kept many people at home and reduced demand for the energy and fuel that usually keeps our highstreets running. In comparison to usual spending habits, this lack of demand saw prices for commodities like petrol decrease.
As life begins to return to normal around the world, with many places able to lift lockdown restrictions thanks to lower numbers of case rates for coronavirus. This means people are back to work or out travelling to see family and the demand for energy and fuel has subsequently increased. Petrol prices are now reaching an all time high as reopening around the world puts pressure on global supply chains. Compared to last year, gasoline saw a jump of 49.6 % in price, and of 37.5 % for fuel oil.
Pressure has been on energy prices also as consumers have seen a 25% rise in overall energy prices in the US. This could be due to the higher demand on energy from people staying at home and individuals consuming more energy than in a shared workplace or school as a result.
Numbers on inflation are expected to be volatile and not representative over the next few months as a result of the coronavirus pandemic. Where there was an almost full shutdown of the US economy last year, which caused a low rate of inflation, the added pressure this year comes as everything starts to reopen and demand returns to normal.