The rates of consumer price inflation have varied across countries, reflecting their economic conditions and people’s expectations of future inflation. Hence, after experiencing negative rates of inflation for much of the year, Japan’s month-to-month inflation rate in December 2021 had risen to 0.8%. In the standard supply-demand diagram, the demand curve and the supply curve both stayed the same as in the pre-pandemic era. The virus was thus a wedge that intervened vertically between the demand curve and the supply curve. That means we will be feeling the effects of higher energy prices – and higher inflation – for some time to come.

Source: Stuff May 08, 2022 01:41 UTC