During the post-COVID-19 period, a surge in global inflation led to unprecedented fluctuations, with savings-oriented behaviors less prevalent than in previous decades
by Kerem Alkin
Daily Sabah
After the initial shock of the COVID-19 pandemic subsided and global demand began to rebound, global supply chain issues, influenced by the ongoing aftershocks of the pandemic, sparked a rapid acceleration in global inflation, which had remained largely subdued for decades. Supply disruptions, exacerbated by prolonged quarantine and restriction measures in China and Asia to combat the coronavirus pandemic, further fueled global inflation, compounded by the surge in demand resulting from accumulated savings during the initial 18 months of the pandemic. This dynamic, coupled with shifts in intergenerational savings and spending behaviors, has elevated the range of fluctuations in global inflation to unprecedented levels.
Over the past decade, maintaining price stability has become increasingly challenging, particularly in developing economies, as shifts in living standards and restructuring of saving-consumption habits have occurred.