The return of inflation [What Think Tanks are thinking]

Inflation has risen to levels not seen in 40 years in the euro area or in many other countries, forcing some central banks to raise interest rates in a context that bodes ill for economic growth. Initially driven by post-pandemic supply shortages and then by soaring energy prices, following Russia's invasion of Ukraine, inflation is now becoming increasingly broadly based, affecting everything from food and services to household goods. Dissatisfaction with the rising cost of living is leading to social protests, increasing political risks for many countries. In the euro area, price growth was 8.1 % in May year-on-year, more than four times the European Central Bank's target. This note gathers links to the recent publications and commentaries from many international think tanks on resurgent inflation. Many earlier publications on inflation can be found in a previous edition of the 'What Think Tanks are Thinking' series.