Inflation recovery, the main topic of today’s G7 virtual meeting
A source familiar with the matter said on Friday that finance ministers from the Group of Seven (the Group of Seven most industrialized countries) will meet around the corner on Monday to discuss the recent rise in inflation, among other things.
The source said that the meeting, which was reported by Bloomberg News earlier, will be the last under Britain’s presidency of the Group of Seven before Germany takes over this role next year.
The agenda will include economic topics such as inflation, as well as health and climate.
The talks come amid problems facing global supply chains that have hampered economic recovery for all nations, while ministers will also discuss healthcare.
News of the talks came shortly after US inflation data was released at the end of November.
The Labor Department reported Friday that US consumer prices rose 6.8%, their biggest annual increase since 1982.
The data increased pressure on the Federal Reserve to tighten monetary policy.
Economists warn that high inflation could continue into 2022, as supply bottlenecks show little sign of abating and wages rise as companies compete for workers.
Inflation in the Eurozone and the UK is also on the rise, driven by energy prices, labor shortages and deteriorating global supply chains.
Recently, Jerome Powell, President of the United States Federal Reserve, declared that inflation was “significantly above” the agency’s 2% target and that “problems in the supply chain have made it difficult for producers to respond to demand. Higher energy prices and rents are also driving up inflation.” .
At the end of October, the International Monetary Fund estimated that global inflation would be 4.8%, the highest level since 2007.
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