In the seventh episode of The Weekly Tradecast we’re talking about inflation with Jeronim Capaldo, an economist in UNCTAD’s globalization and development strategies division.
Every day in the news, we’re hearing about a global slowdown and how the war in Ukraine is driving up prices at a pace not seen in decades.
Other forces are also fuelling inflation – including supply disruptions hanging over from the COVID-19 pandemic and severe weather that has ruined harvests.
High inflation causes damage by eating up more of people’s pay and eroding their savings. It can even bring an economy to its knees – like in Germany after World War One and in Zimbabwe not that long ago.
Jeronim says developing countries, where people already spend much of their money on the basic necessities of life, are the ones who suffer most as prices soar.