Inflation Crisis under COVID-19 Pandemic and Ukraine Conflict

Abstract

With the development of economic globalization, the economies of all countries are influencing each other and holding each other in check. Globalization is a double-edged sword, which brings both opportunities for development and serious challenges and risks to all countries in the world. Compared with developed countries, developing countries are more affected by crises and other shocks. This paper focuses on the changes of inflation in three major countries, the U.S., the U.K. and China, under the impact of two major events, the COVID-19 epidemic and the Russia-Ukraine conflict. During the first half year of 2020, the COVID-19 epidemic caused inflation in all three countries. This paper provides an overview of the current economic situation before going on to discuss the economic effects of the COVID-19 pandemic and the conflict in Russia and Ukraine on these three nations in terms of CPI, food prices, and energy costs. It concludes by summarizing how the economies of the United States, the United Kingdom, and China will develop in the future.