We look at what’s behind the rising cost of living and the action being taken by policymakers.
The cost of living keeps sliding higher and central banks have sprung into action.
The United States Federal Reserve, the Bank of England and the Swiss National Bank have all increased their key interest rates, and the European Central Bank has indicated it will move in a similar direction in July.
Targeting inflation is part of a central bank’s main goal and it helps to maintain price stability, but it has not been working, for a variety of reasons. We have seen protests around the world because of the higher cost of food and services in the past week.
A little inflation can be a good thing, if everyone’s salary rises at the same pace as prices, but that has not been the case. We ask what central banks and governments can do.