For this to happen, continued fiscal and monetary policy support is needed to nurture and cultivate the nascent recovery and to set in motion a virtuous circle of rising underlying inflation and wages. Pandemic-related developments driving global inflation higher Global inflation has increased measurably since the start of the year.
In May it reached 3.8% across the 36 member countries of the Organisation for Economic Cooperation and Development (OECD), more than twice the rate recorded at the start of the year, and the highest rate since the outbreak of the global financial crisis in 2008 (left chart slide 2). Although the increase in inflation is broad-based, its extent differs notably across countries.