At the end of December last year, the consumer price index in the United States rose by 7 percent, inflation was a record in 40 years. As reported The wall street journal, the annual growth was the highest since 1982.
The rise in prices was affected by the influence of the new omicron strain of the coronavirus. The core consumer price index (excluding food and energy prices) rose 5.5 percent year-on-year and 0.6 percent from the previous month.
Previously International Monetary Fund (IMF) warnedthat countries with developing economies, including Russia, may face problems if Federal Reserve System (FRS) US to raise interest rates and wind down stimulus program. Several countries have now begun adjusting monetary policy and are preparing to cut budget support to tackle rising debt and inflation.
Also, the influence of the omicron strain forced analysts revise their forecasts for the recovery of the American economy. According to the consulting company Pantheon Macroeconomics, in the first quarter of 2022, US GDP will grow by 3 percent instead of the expected 5 percent. In turn, Moody’s Analytics lowered its forecast from 5.2 percent to 2.2 percent.