The Truth About Inflation

Inflation is growing in countries throughout the world, from Asia to the United States. The International Monetary Fund forecasts that global inflation will increase to 4.4 percent by the end of 2026 – a little under one percentage point higher than originally predicted. The blockade of the Strait of Hormuz predictably shocked the energy market, resulting in higher prices for resources and transportation due to increased freight costs, insurance premiums and extended delivery times. The United Arab Emirates’ exit from OPEC and the strikes on production and infrastructure facilities have made things worse, the net result of which is volatile energy markets, which make policy options difficult.

The timing of this bout of inflation is especially bad…