Inflation rose on a global scale.

One of the greatest legacies of the pandemic in 2020 to 2021 was the increase in inflation in the emerging conditions. Inflation started to increase around the world in 2021 and the year-end 2021 saw peak levels in many developed and developing countries. This global scale rise in inflation stemmed from supply-side problems and cost increases, while the contribution of demand was relatively small.

Global inflation started to climb primarily due to the increase in transport costs and commodity prices. The problems in supply chains led to significant increases in input prices.  In late 2021, energy prices followed suit with a considerable jump. Natural gas and electricity prices were the first two to go up.  With an expectation of increase in demand, oil prices also rose significantly. Food prices followed an upward trend throughout the year because of supply chain security issues caused by climate change and the high rates of increase in production inputs, especially fertilizers.