This info-graphic ‘ECONOMIC UPDATE AUGUST 2021’ gives us an overview of post pandemic rise in inflation around the World and suggested courses of action.
British consumer prices rose by more than anticipated last month as fuel and clothing costs surged following the easing of COVID-19 restrictions. Much of the inflationary pressure in May was due to price swing caused by the pandemic. Fuel and clothing prices dropped a year ago when Britain’s first national lockdown reduced demand, then rose again in May as the restrictions imposed during a third lockdown were eased.
There is currently an abundance of money in the global system. The author states Governments and Central Bankers are trying very hard to ensure inflationary expectations do not become embedded in the national psyche. Also, Central Bank digital currencies would be accessible to all and could be a very efficient low-cost payment system run directly by not-for-profit central money repositories.
CFOs are now focusing more prominently on growth, and not on cost reduction. They are planning to increase investment spending, mainly especially Mergers & Acquisitions. The leaders have promised to render vast infrastructure renewal using available money in the system. For more detail, please refer to the info-graphic below.