Article taken from the Federal Reserve Bank of Chicago
In June 2022, the 12-month inflation rate of the U.S. Consumer Price Index (CPI) hit 9.1%, its highest level in over 40 years. The U.S. is not alone: Across the industrialized world, inflation is accelerating during the recovery from the pandemic recession. Although inflation is surging globally, the sources of inflation are different in each country. In this Chicago Fed Letter, we document four facts about where the U.S. stands amid the global inflation surge:
Inflation has accelerated across industrialized countries, and the U.S. is in the middle of the pack.
Food and energy prices play the largest role in European inflation acceleration, but play a smaller role in the U.S.
In the U.S., durable goods prices play an outsized role in overall inflation relative to other countries.
Labor market conditions and fiscal stimulus are correlated with inflation acceleration across countries.