As inflation worsens, Chief Strategy Jimmy Zhu discussed the various impacts on the global economy in his latest report for CGTN:
- The U.S. March Consumer Price Index (CPI) rose 8.5 percent from a year ago, its highest reading in 40 years.
- Increased gas prices in the U.S. have caused Americans to change their lifestyles and consumption behaviours, as they have lesser discretionary income to spend.
- Consumer Confidence Index has dropped to its lowest level in 10 years.
- The U.S. Federal Reserve is likely to increase rates by 50 basis points in May, reducing its balance sheet.
- The Eurozone economy could suffer more than the U.S. from the rapidly rising costs due to the Russia-Ukraine geopolitical tension.
- There are increased expectations for the PBOC to introduce more monetary support to offset the economic impact of the ongoing pandemic in recent weeks.
Read the full report here: https://news.cgtn.com/news/2022-04-19/Worsening-inflation-increases-recession-risk-in-some-Western-economies-19m1Y5eljHO/index.html