Inflation has hit its highest level in decades for many countries as a result of Russia’s war in Ukraine

Inflation has hit its highest level in decades for many countries, including the U.S., UK, Germany, France, and Japan, with the Russian invasion in Ukraine adding upward pressure on energy prices and squeezing households’ real incomes. Some economists even fear a return to the chronic inflation of the 1970s.

Higher inflation is spreading beyond energy to many other consumer items, especially in countries where demand is strong enough for businesses to pass on higher costs.

Rising prices limit what households can spend on goods and services. For the less well-off, that could lead to a struggle to afford basic needs, such as food and shelter.

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