The first of this two-part data journalism series looked at various aspects of inflation in advanced countries and underlined the differences between inflation in the US and Euro area economies. This part will look at the political economy around inflation in this region. Whether or not an aggressive hike in interest rates will control inflation has become a major topic of debate in advanced economies and this is not a debate limited to just economists at the moment. Here are three charts which explain the major factors shaping this debate.
The curious case of falling consumer sentiment but rising consumer spending in US
In a sharp downward revision from its April forecast of 3.7%, the IMF now expects the US economy to grow at 2.9% in 2022. One of the major reasons for this downward revision was the expectation that US Federal Reserve will hike interest rates going forward. While the IMF expects that the US will “narrowly avoid a…
