07/27/2022 – The global economy remains in the grip of further rises in inflation, forcing central banks to take more significant interest rate steps. The still existing after-effects of the pandemic in the form of distortions in the global supply and demand structure are again exacerbated by the distortions in the energy and food sectors as a result of the Ukraine war. Europe is suffering the most from the consequences of the war due to its geographic proximity to Russia and its energy dependence, and is proving to have only limited political capacity to act in this critical phase. The US is experiencing stubborn inflation, not least because wages are rising more sharply due to a widespread shortage of personnel. Even the relatively strong dollar, which is having a favorable impact on import prices, is unable to offset inflation.

Read more in the Macroeconomic Comment by Peter von Elten.