This weekend’s G20 summit in Paris is likely to be dominated with the talk of rising inflation.
The two-day meeting of finance ministers and central bankers from 20 of the world’s largest developed and developing nations, will discuss soaring inflation – which is causing severe problems for many economies throughout the world.
In the UK, consumer price inflation rose to 4% in January – double the Government’s 2% target.
Yesterday, the Labor Department revealed the US Consumer Price Index, the core rate of inflation, rose by 0.2% on a monthly basis – the largest gain since October 2009.
In the euro zone, the current rate of inflation is at an annual 2.4% – slightly higher than the target of just below 2%.
In China, meanwhile, the consumer price index rose 4.9% in January and is well in excess of the 3% target set by the Government.
Finally, India’s inflation rate is the highest among the Group of 20 leading nations, due to soaring food costs.
Several other central banks throughout the world are battling with stubbornly high inflation, which is being driven by rising food and commodity prices.
Earlier this week, the World Bank said food prices were at “dangerous levels” and, as a result, has pushed 44 million more people into poverty in the last few months.
At the last G20 meeting, currency wars was the main item on the agenda but rising inflation is now becoming a big concern.