Impact of COVID-19 Pandemic: A Global Inflation Crisis

Abstract

Under the severe situation of COVID-19 pandemic, the global economy faces great challenges from multiple shocks. Since people’s activities are restricted indoor due to lock-down policies, the unemployment seems to get negatively affected. This paper focuses on the impacts of COVID-19 on price indices and inflation rates within the economies of United States, Euro Area and China respectively. During the pandemic, there are tendencies of recession. The countries are trying to boost the economies. It explains the evidence of the changes of different indices utilizing figures and combines the evidence with the policies imposed by the governments and monetary authorities for each region. There might be other evidence between the expansionary policies and the economic performance. It also takes into consideration of effects from Ukraine conflict on the price indices. This research concludes that although the authorities are exerting to stimulate the economy, they might need to stabilize the price levels considering the long-term effects on inflation risks.