South Forest Hill Residences for sale.Can buying a house still fight inflation? Inflation in many of the world’s advanced economies has soared to its highest level in decades, especially in Europe and the United States, where CPI has reached a 40-year high. Global economies with CPI above 5% account for more than 60%.Please Visit: South Forest Hill Residences for sale to Get Your VVIP Registration Today!
Eurozone inflation hit an all-time high of 8.1 per cent in May; South Korean inflation hit a 14-year high in May, with CPI rising 5.4 per cent year-on-year; and French annual inflation exceeded 5 per cent in May for the first time since September 1985. In addition, Icelandic inflation rose to 7.6 per cent in May, the highest since April 2010. Turkey’s inflation rate reached a 24-year high of 73.5% in may. It is worth mentioning that the Jiasheng group research report predicts that the US inflation rate may be 8.3% flat in May.
In France, for example, the prices of 12 commodities in French supermarkets rose by more than 6% in May 2022, including 15.54% for meat, 14.93% for spaghetti, 8% for cooking oil and 6% for eggs. Affected by this, French household consumption officially entered the “inflation mode”. To put it bluntly, many families begin to spend cautiously and try their best to reduce unnecessary expenses. Why is this? Because research shows that French households spend an average of 90 euros a month on inflation.
In the United States, high inflation has made many Americans lose their homes and even become homeless. According to the US Consumer News and Business Channel, 25% of Americans will have to postpone retirement due to the impact of inflation. In addition, according to data from the US Department of Commerce in April, inflation caused the US personal savings rate to fall below 5%, and consumer confidence remained low.
When it comes to inflation, ordinary people may not feel anything, and some may even think that “inflation has nothing to do with me”. In fact, it is not, as the saying goes, “inflation is as fierce as a tiger”. Once inflation like a scourge strikes, ordinary people will have to silently bear the result of a sharp devaluation of cash and a decline in purchasing power. This is where the saying that “the poor are afraid of inflation” comes from.
In Lebanon, for example, the inflation rate was 206.24 per cent in April. What many people do not know is that the Central Bank of Lebanon and the central government officially declared bankruptcy on April 4 this year. The root cause is that, since 2019, the Lebanese economy has fallen into a serious crisis as a result of the Beirut explosion and the epidemic: the Lebanese currency depreciated by 90 per cent in 2022, GDP shrank by 21.4 per cent in 2021, external debt reached US $95 billion and about 75 per cent of the population was in poverty.
In 2022, under the influence of the conflict between Russia and Ukraine, domestic prices in Lebanon fluctuated sharply again, especially wheat, which is heavily dependent on imports. Lebanese economist Yakuri said frankly, “the price of flour may rise 200-400 times.”
Over the past three decades, global inflation as a whole has been moderate. Why has inflation been so feverish since 2020? In the view of professionals, high inflation is caused by a combination of various reasons:
First of all, the main cause of inflation is the large-scale “printing and releasing water” of central banks led by the United States. The main one is a series of American money printing and stimulus policies. According to data released by the US Treasury on June 4, the US Treasury and the Federal Reserve have released a total of $36 trillion in printing water in the past 38 months. In essence, this time, the United States still reaps the wealth of the world by relying on the hegemony of the dollar. To put it simply, the United States lost its ability to create wealth on its own, so it asked for income from other overseas countries.