Worldwide Inflation
As soon as the pandemic went away all over the world, the Russia-Ukraine battle started. Its influence weakens the wheel of the world economy. Due to this war, global economic growth has declined. Global economic crisis and unrest, global export-import systems, global production systems, and the supply-and-demand chain have been hindered, the impacts of which have been reflected upon all countries more or less. However, due to these worst impacts, the worldwide inflation rate is increasing, and almost all countries are facing its severe consequences.
Inflation arises in the world economy when the global production level declines while the monetary supply increases. To fulfil the consumption level of essential products, the price/cost of those essential products increases sharply, and this kind of economic condition is defined as “inflation.”
However, there are many conspicuous reasons behind the increasing level of inflation worldwide.
The first one is the lower production level of indispensable consumer products.
The second one is the decreasing value of money.
The third one is the scarcity in the supply of vital consumer products.
The fourth one is the expansion of demand for essential consumer products rather than their supply level.
Be that as it may, the worldwide inflation-increasing rate is too high due to the deficiency in the production and supply of oil. It should be noted that the main reason behind the deficiency in oil production and supply in the world market is global diplomatic political games between NATO-affiliated countries and Russia. After Saudi Arabia, Russia is second on the list of oil-producing and exporting countries. It should be noted that European countries are highly dependent on Russia for oil to continue industrial productivity. Also, almost all European countries are NATO-affiliated, along with mastermind USA. On the other hand, Russia is an ever-enemy of the USA. Ukraine is nothing but a tool for NATO-affiliated countries to defeat Russia. One after another economic restriction given by the USA and its friendly EU-affiliated countries upon Russia, on the contrary, Russia’s oil export and supply stoppage towards NATO-affiliated countries, have created oil deficiency in the world market, and so oil prices in the international market are on the highest increase. In addition, Russia’s geographical integrality interest and the USA’s long-term expectation to segregate Russia’s geographical unity have made artificial oil deficiency on the world economic platform, which eventually developing, rising-developing, and under-developing countries are suffering a lot from prolonged inflation.
Besides, rising-developing and under-developing countries’ internal reserve levels are not as high as developed countries, which is why it is very costly to import oil at high expense. The more reserve levels of these rising and under-developing countries are spent on oil import, the more these countries’ dollar reserves are dwindling, which consequently brings internal economic conditions to the worst level. As a result, in these countries, living-standard expenses, unemployment, national income, and production chain costs are dwindling.
Not only rising-developing and non-developing countries but also developed countries (NATO- and EU-affiliated member countries) are facing the same problems more or less, which are visible in EU-affiliated countries. Almost all EU-affiliated countries’ inflation rates are too severe to keep pace with the increasing prices of necessary daily commodities, which is why the tendency of consumption of extra goods is diminishing. Even in almost all EU-affiliated countries, low production, unemployment, low indigenous income, low investment opportunity, and lower living standards are visible.
Last but not least, worldwide inflation’s continuity will bring about global economic recession—that goes without saying in the world economy. Therefore, to save the world economy from global economic recession, there is no alternative to global political balance and resilience.
