Prices are rising all over the world, and leaders see no quick fix

Among major economies, only China has a lower inflation rate today than in early 2020.Four ways Americans are feeling inflationAround the world, soaring prices are emerging as a feature of the post-pandemic recovery, prompting some central banks to pivot to inflation fighting.The new focus caps an era since the 2008 financial crisis that saw global forces — such as the rise of cross-border supply chains and a decline in workers’ bargaining power — keep inflation subdued.As factories around the world revive at different speeds, a mismatch between the goods that are being produced and those that customers want to buy is helping drive prices higher. So, unlike in the United States, where direct government checks drove a consumer spending boom, European consumption remains depressed, said Laurence Boone, chief economist for the Organization for Economic Cooperation and Development, in a speech last week.“The largest driver of inflation in the euro area is energy prices and we all know why: weather, low gas stocks and reserves, delayed maintenance in infrastructure, not enough investment, particularly in renewables, geopolitics, all of which cannot be resolved rapidly,” she said.Indeed, monetary policy can’t do much about energy shortages. The Bank of Russia raised its key rate for the seventh time in 2021, citing a delayed harvest and a shortage of new cars.Uncertainty over the pandemic’s course also could keep international borders closed longer than anticipated, delaying the expected easing in price pressures, the Russian central bank’s chief, Elvira Nabiullina, said last month.Mounting Omicron infections force businesses to scramble, threatening the recoveryIn China, where the economy is slowing, the central bank cut key lending rates last week, amid worries over the impact of the omicron variant and upheaval in the debt-ridden property sector.Some of the international influences on inflation are temporary.