Inflation is, and will be, the number one economic issue of 2022. All countries are facing rapid rises in consumer prices which is threatening not only their economic recovery from the Covid outbreak but also the stability of many governments. The US consumer price index (CPI) hit a 39-year high at 7% in December 2021, prompting Goldman Sachs to predict that the Federal Reserve Board might raise interest rates four times this year.
In Thailand, even though the December 2021 CPI was just 2.2%, producer price index (PPI) inflation is already at 7.7%, which implies that much higher prices await consumers this year. So far the theory seems to be proving correct and consumer prices resemble the onset of an exploding volcano. I am curious to see what the January CPI will look like, as certain food prices are already at least 10% higher than in December.
