2021–2023 inflation surge
A worldwide surge in inflation began in mid-2021, with many countries seeing their highest inflation rates in decades. It has been attributed to various causes, including COVID-19 pandemic-related economic dislocation, supply chain disruptions, the fiscal and monetary stimuli provided in 2020 and 2021 by governments and central banks around the world in response to the pandemic, and price gouging. Recovery in demand from the COVID-19 recession had by 2020 led to significant supply shortages across many business and consumer economic sectors. The inflation rate in the United States and the eurozone peaked in the second half of 2022 and sharply declined in 2023 and into 2024. Despite its decline, significantly higher price levels across various goods and services relative to pre-pandemic levels persist, which some economists speculate is permanent.
| Country/Region | 2020 | 2021 | 2022 |
|---|---|---|---|
| Argentina | 42.0% | 48.4% | 72.4% |
| Australia | 0.9% | 2.8% | 6.6% |
| Brazil | 3.2% | 8.3% | 9.3% |
| Canada | 0.7% | 3.4% | 6.8% |
| China | 2.5% | 0.9% | 1.9% |
| Japan | 0.0% | -0.2% | 2.5% |
| South Korea | 0.5% | 2.5% | 5.1% |
| Turkey | 12.3% | 19.6% | 72.3% |
| United Kingdom | 0.9% | 2.6% | 9.1% |
| United States | 1.3% | 4.7% | 8.0% |
| Europe and Central Asia | 1.2% | 3.3% | 10.4% |
| European Union | 0.5% | 2.6% | 8.8% |
| Latin America and Caribbean | 1.0% | 3.9% | 7.7% |
| South Asia | 5.7% | 5.5% | 7.7% |
| World | 1.9% | 3.5% | 8.0% |
In early 2022, the Russian invasion of Ukraine's effect on global oil prices, natural gas, fertilizer, and food prices further exacerbated the situation. Higher gasoline prices were a major contributor to inflation as oil producers saw record profits. Debate arose over whether inflationary pressures were transitory or persistent, and to what extent price gouging was a factor. All central banks (except for the Bank of Japan which had kept its interest rates steady at –0.1% until 2024) responded by aggressively increasing interest rates.