2022 in Review: Inflation Emerges After the Pandemic

2022 was a turbulent year. The COVID-19 pandemic had relatively subsided, accompanied by the recovery of various economic sectors that had previously been dormant due to the pandemic.

However, the Russia-Ukraine war erupted this year, triggering a surge in inflation and economic shocks in many countries.

Ipsos conducted a survey on this matter involving 20,466 respondents across 29 countries. They found that global public anxiety regarding COVID-19 significantly decreased throughout 2022.

In January, 35% of respondents were worried about the pandemic. However, this percentage gradually decreased to 11% by December.

On the other hand, anxiety about inflation continued to grow. At the beginning of the year, only 20% of respondents were concerned about rising prices. After the Russia-Ukraine war broke out in February, inflation anxieties climbed to 40% by December.

According to Jennifer Hubber, Global Client Organization Head at Ipsos, the global public also tends to believe that inflation will continue to rise until 2023.

"People don't believe that price increases will end anytime soon. Seven out of ten people feel their spending will increase in 2023," said Jennifer in the report *Feeling the Pressure: Understanding Consumers during Inflationary Times*, Tuesday (29/11/2022).

In response to this, Colin Strong, Ipsos' Head of Behavioural Science Research, stated that people must prepare themselves to face changing conditions.

"Currently, we live without a fixed pattern and can no longer rely on old beliefs. We need to learn to live by constantly adapting to rapid change," said Colin.

Unlike the views of the general public, the International Monetary Fund (IMF) predicts that global inflation will fall from 8.8% in 2022 to 6.5% in 2023.

"Overall, several indicators suggest that the surge in commodity prices may be starting to ease as global demand slows, helping to moderate inflation," said the IMF in its October 2022 *World Economic Outlook* report.

However, the IMF still warns of risks that could push inflation higher next year, including the continuation of the Russia-Ukraine war and extreme weather.

"Energy prices will remain highly sensitive to the war in Ukraine and the potential for other geopolitical conflicts," said the IMF.

"Extreme weather events could damage global food supplies, driving up the prices of staple foods and having dire consequences for poor countries," it continued.