The Inflationary Spiral: How It Will Affect the World Economy and Markets

A couple of months ago, regulators, analysts and investors unanimously insisted that global inflation is only a temporary phenomenon. But months go by, and prices in developed and developing countries are only rising. In Brazil, inflation in September was 10.3%, in Mexico - 6%, in the US  - 5.4%, in the Eurozone - 3.4%. In Russia, by the end of October, it may exceed 8%.

Even Fed Chairman Jerome Powell, who until recently argued that U.S. inflation was temporary, admitted last Friday that supply chain disruptions could see inflation rise further. Hence, a completely fair question: how long will inflation be with us and how does this threaten the global economy and markets?

To begin with, I will list the current factors for the continuation of global inflation.