Amid the COVID-19 pandemic, inflation in the world’s wealthiest nations has decreased at the fastest pace since 2008 financial crisis, while the world economy is spiraling towards the deepest recession since the Great Depression, according to a recent report in The Guardian.
The Organisation for Economic Cooperation and Development (OECD), an international economic organization comprised of 37 of the most advances countries, reported that annual growth in the price of goods and services slowed dramatically in those countries in March, with the pandemic putting business and social events on the back burner around the globe. Inflation across OECD nations dropped to 1.7% in March, down from 2.3% in February.
With diminishing global oil prices due to a price war between Saudi Arabia and Russia, as well as coronavirus concerns, the OECD said energy prices fell by 3.6% in March, following a 2.3% increase in February. In the meantime, food price inflation increased to 2.4% in March, up from 2% the month prior.
Economists are concerned that the global recession sparked by this pandemic may lead to a deflationary spiral, which could cause even more workers to be laid off. Deflation is when the price of goods and services falls for a sustained period of time.
To read the full report in The Guardian, click here.