These levels are, on average, 6% higher than the levels observed in 2019.
Production and distribution disruptions are part of the supply side considerations behind the global surge of inflation. However, demand side factors, as the strong fiscal stimulus implemented to counteract the negative effects of COVID-19, and low interest rates, are also part of the reasons behind the increase in price levels. Despite the fact that central banks have been rising interest rates around the globe, inflation is in general well above those levels, which implies negative real interest rates, which average -5%.
It is imperative to work towards anchoring inflation expectations, to avoid a persistent escalation of prices, with their misallocating effects.