10 Countries with Highest Inflation Rate, Indonesia Included?
JAKARTA, KOMPAS.COM – The Covid-19 pandemic has had a real impact. Not only for health, but also for the world economy. It can seen from the surge in inflation during the economic recovery period.
In addition to the prolonged pandemic, the spike in inflation also occurred due to: external factors and internal factors. Some of these factors are supply chain disturbances, and geopolitical tensions between Russia-Ukraine.
The Russo-Ukrainian war led the West to impose economic sanctions to Russia. As a result, some countries that have dependence Import exports with Russia also plunged amid strong demand increase.
Quoting the definition of inflation by Bank Indonesia (BI), Thursday (12/5/2022), Inflation is a sign of rising prices for goods and services in general and continuously for a certain period of time.
Due to rising prices of goods, high inflation will erode power buy society. Inflation that is too high will have a negative impact in lower-middle income communities who already have income was mediocre, even before inflation rose.
Other negative impacts will cause peoples real income continues to decline. As a result, peoples living standards decline and make poor people fall into the abyss of extreme poverty.
High and continuously increasing inflation will create instability and uncertainty ( uncertainty ) for economic actors in making decisions.
Higher level of impact of domestic inflation compared to the inflation rate in neighboring countries makes the domestic interest rate real estate becomes uncompetitive, so it can put pressure on rupiah exchange rate.
10 COUNTRIES WITH HIGH INFLATION RATE
High and persistent inflation rates have occurred in several countries. Its not just a pandemic, there are several internal factors which causes inflation to soar.
In Turkey, for example, inflation on an annual basis ( year on year /yoy) has been increased by tens of percent, one of which was caused by the crisis economy in the country. Inflation in Turkey becomes the highest in todays world.
