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Wednesday, March 22, 2023

Food, fuel prices to rise in 2022, driving inflation: Moody’s

EconomyFood, fuel prices to rise in 2022, driving inflation: Moody's

New York (Times Of Ocean)- Moody’s said Monday that the world’s inflation rate will remain high throughout 2022 as food and fuel prices rise and supply chain disruptions.

The global rating agency said in a report that it expects inflation to moderate in the second half of 2023. fuel

“The report said Moody’s expects inflation to remain above pre-pandemic levels in 2022, fueled by both supply and demand factors; however, the Russian-Ukrainian military conflict has exacerbated supply-side pressures.”

“In the second half of 2023 as long as the global economic impact of the conflict is contained, normalization of activity and supply chains will support a gradual easing in inflation back toward pre-pandemic levels,” the report says.

Inflation would increase social and political risks if it persists for even longer.

“Rising food and energy prices – which are nondiscretionary consumption items for low-income households – contribute to rising social tensions and increase government expenditures as governments attempt to mitigate the impact of higher prices on the public,” the report said.

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