With inflation expected to continue for the foreseeable future, it’s important to know that people experience its impact on many fronts – economic, political, and social – and that it does not affect everyone equally. The less affluent feel the reverberations of inflation much more acutely than wealthier households, thus changing citizen calculus and increasing uncertainty in politics and business.
Explore our five data points that are most relevant for senior decision-makers right now:
- Plan for inflation: Inflation is here to stay with us in the near term, a recession is likely to follow, and unemployment may rise.
- Consumers will cope: In the short term, consumer behavior mimics what we would see during an economic downturn. In the long term, it requires institutional adaptations.
- Inflation is regressive: It negatively affects the less affluent more than the wealthy. Expect more discontent and deepening inequality as a result.
- Inflation is top of mind: For now, it will decide upcoming elections and significantly shape policy.
- Governments will be blamed: The uncertainty weakens incumbents. Expect turnover and less meaningful legislation.
Download our Quick Take on Inflation for more information on each of the areas above.