The 9.1% increase in U.S. consumer prices in the 12 months ending in June 2022, the highest in four decades, has prompted many sobering headlines.
Meanwhile, annual inflation in Germany and the U.K. – countries with comparable economies – ran nearly as high: 7.5 percent and 8.2 percent respectively, for the 12 months ending in June 2022. In Spain, inflation has hit 10 percent.
It might seem like U.S. policies brought on this predicament, but economists like me doubt it because inflation is spiking everywhere, with few exceptions. Rates averaged 9.65 percent in the 38 largely wealthy countries that belong to the Organization for Economic Cooperation and Development through May 2022.
What revved up those price increases starting in early 2021?