Impact of COVID-19: Inflation Rate & CPI

Abstract

This paper investigated in the topic of inflation under the event of COVID-19. To what extend did COVID-19 have impact on the inflation in these economies through the indexes like inflation rate and CPI. Through research it is concluded that COVID-19 had the largest impact on the US economy with an experience of high inflation, based on inflation rate and CPI. Especially areas like energy, retails, and services were impacted the most with the price of goods increasing rapidly. Similar, the EU economy also experienced a high inflation with import being restricted because of COVID lockdown and energy price rising. However, even though China experienced continuous lockdowns under the zero COVID-19 policy implementation and industries closed also consuming goods and services being put off. But China's economy still maintained a low and stable inflation from investigating in the inflation rate and CPI, with China's economy having a strong ability to self-repair.