Inflationary pressures during the global recovery from Covid-19: drivers and expectations

When Covid-19 broke out, inflationary pressures subsided because the pandemic disrupted both human life and the economy, resulting in a recession. However, as soon as the economy rebounded, inflation skyrocketed, reaching unprecedented levels in many countries. A confluence of factors influenced the occurrence and intensity of inflationary pressures during the 2021 economic expansion, with the Russian-Ukraine conflict adding further upward pressure on prices in 2022. The purpose of this study is to examine the leading drivers of inflation during the global recovery from the Covid-19 pandemic, as well as long-term inflation forecasts. This paper is divided into five chapters, the first of which introduces a general overview of inflation, by defining the phenomenon, potential drivers, and costs and benefits. The second chapter investigates Covid's overall economic impact, considering fluctuations in demand and supply. The third chapter includes statistical data on the economic impact of the sanitary crisis as well as inflation rate data over time. Chapter four provides answers to the main question of this study “What are the main drivers of inflation during the global recovery?”. The fifth and final chapter explores inflation forecasts, attempting to determine whether recent inflation is transitory or a more serious type of systemic inflation.