Causes of inflation in the world from 2021 up to now and solutions of some countries.

Vietnam's policy to control inflation in this period and in the future

LIST OF ACRONYMS
1. CPI: Consumer Price Index
2. GDP: Gross Domestic Product
3. Fed: Federal Reserve
4. FOMC: Federal Open Market Committee
5. ECB: European Central Bank
I. Introduction
In recent years, the world economic situation is undergoing great changes due to a series of
events such as the Russia-Ukraine war, the covid 19 epidemic, etc., with many policies
affecting the global economy. A specific manifestation is that the inflation index of many
countries, including developed and developing countries, has increased since 2021, but
throughout the 2010s, the inflation index has remained stable. A series of complex issues
such as soaring food and energy prices, pandemic financial instability and consumer
insecurity have created a new global recession, and global inflation in 2022. estimated up to
8.75%. This is the highest annual increase in inflation since 1996. High inflation has severely
affected many economic sectors and other regions in the world, including Vietnam. Facing
that situation, countries have judged and put in place remedial measures, since 2023 have
somewhat curbed inflation. However, the topic of inflation in the world and measures to
overcome inflation of countries from 2021 to now is still a topic that needs to be studied and
researched.
II. Inflation Situation In The World From 2021 To Now
1. Inflation
1.1. Concept
In macroeconomics, inflation is the continuous increase in the general price level of
goods and services over time[1] and the loss of value of a certain currency. When the general
price level rises, a unit of currency buys fewer goods and services than in the past, so
inflation reflects a decrease in purchasing power per unit of currency. When compared to
other countries, inflation is the decrease in the value of one country's currency relative to
other countries' currencies. In the first sense, one understands that the inflation of a currency
affects the economy of a country, and in the second sense, it is understood that the inflation
of a currency affects the whole economy. economy using that currency.
The consumer price index (or CPI for short) is a percentage measure that reflects the relative
change in prices of consumer goods over time. The reason for this is only a relative change
because the index is based only on a basket of goods representing all consumer goods. This is
the most commonly used indicator to measure the price level, and the change in the price
level is inflation (another indicator to reflect the general price level is the Gross Domestic
Product Deflator or the GDP Index). adjusted GDP).
1.2. Reason
In view of Keynesian economics, it is proposed that changes in the money supply do not
directly affect prices, and that visible inflation is the result of pressures in the economy that
manifest themselves in the economy. prices and there are three main causes of inflation.
• Demand-pull inflation is caused by demand greater than supply, leading businesses to
increase prices of goods and services, etc. Demand inflation encourages economic growth
because excess demand and favorable market conditions stimulate investment and expansion.
The demand-pull theory states that inflation accelerates when aggregate demand increases
beyond the economy's ability to produce (its potential output). Therefore, any factor that
increases aggregate demand can cause inflation.[2] In the long run, however, aggregate
demand can be held above productive capacity simply by increasing the amount of money in
circulation faster than the real growth rate of the economy.
• Cost-push inflation, also known as "supply shock inflation," is caused when the government
cuts taxes or increases regular consumption, leading to a budget deficit, currency devaluation,
and inflation tax. input material prices lead to the bankruptcy of enterprises, reducing total
supply (potential output). This could be due to a natural disaster. For example, a sudden drop
in the supply of oil, which leads to an increase in oil prices, can cause cost-push inflation. Oil
producers for whom oil is part of their costs can then pass this information on to consumers
in the form of increased prices. Another example comes from unexpectedly high insured
losses, either legitimate (catastrophic) or fraudulent (which can be especially common during
recessions).
• Inflation is inherently caused by adaptive expectations, and is often associated with the
"price/wage spiral". It involves workers trying to keep their wages at prices (above the
inflation rate), and companies passing these higher labor costs on to their customers as higher
prices, resulting in a " vicious circle". Inherent inflation reflects past events, and can therefore
be viewed as hangover inflation.
1.3. Solution
1.3.1. Stimulating economic growth
If economic growth is consistent with the growth of the money supply, inflation may not
occur when other factors are equal. A large number of factors can affect the speed of both.
For example, investment in market production, infrastructure, education, and preventive
health care can all grow an economy by the amount of investment spending.[3].
1.3.2. Monetary Policy
Monetary policy is the process of managing the money supply by a monetary authority
(possibly a central bank), usually towards a desired interest rate to achieve the purposes of
economic stability and growth. - such as controlling inflation, maintaining a stable exchange
rate, achieving full employment or economic growth. Monetary policy includes changing
certain interest rates, which can be directly or indirectly through open market operations;
stipulate the required reserve level; or exchange on the foreign exchange market. many other
issues.
1.3.3. Fixed exchange rate
Under a fixed exchange rate regime, one country's currency is pegged in value to another
currency or a basket of other currencies (or sometimes to a measure of value, such as gold). A
fixed exchange rate is often used to stabilize the value of a currency, opposite the currency it
is pegged to. It can also be used as a means to control inflation. However, as the value of the
reference currency goes up and down, so the coin is not stable relative to it. This basically
means that the inflation rate of the country with a fixed exchange rate regime is determined
by the inflation rate of the country to which the currency is fixed. In addition, a fixed
exchange rate prevents the government from using domestic monetary policy to achieve
macroeconomic stability.
1.3.4. Control wages and prices
Income policy is government policy that directly affects wages and prices with the main
purpose of controlling inflation. This policy uses a variety of tools, from hard-line tools such
as prices and wages, general guidelines for setting wages and prices, to legal rules binding
price changes and wages, ... to more flexible tools such as income tax incentives... This
policy uses many tools such as price (P), salary (W), general guidelines to fixed wages and
prices, legal rules binding changes in prices and wages... In addition, the government also
used flexible tools such as guidance, incentives by income tax.
- The income policy is exactly called the wage price policy.
- In order to slow down inflation, it is necessary to curb the increase in money supply and
government spending.
- Inflation control is a big goal, the government seeks to ensure stable prices.
1.3.5. Subsidies for living expenses
The real purchasing power of fixed payments is being eroded by inflation unless they are
adjusted for inflation to keep the real value constant. In many countries, employment
contracts, pension benefits, and government benefits (such as social security) are tied to a
cost of living index, often to the consumer price index. A cost of living allowance (COLA)
adjusts wages based on changes in the cost of living index. Wages are usually adjusted
annually in low-inflation economies. While inflation is galloping, it is adjusted more
frequently.[4] They can also be tied to a cost-of-living index that changes geographically as
employees move.
2. Current inflation situation
2.1. In the world
• USA and North American countries:
America Jan Feb Mar Apr Ma June July Aug Sep Oct No Dec
y v
2021 1.4 1.7 2.6 4.2 5 5.4 5.4 5.3 5.4 6.2 6.8 7
2022 7.5 7.9 8.5 8.3 8.6 9.1 8.5 8.3 8.2 7.7 7.1 6.5
2023 6.4 6 5 4.9
 Table 1: US Inflation Rate (Data Source: US Bureau of Labor Statistics)
Inflation hit highs in 2022 unseen since the 1970s. Inflation started at 7.5% in January and
eventually climbed up to 9.1% in June, when gas prices were hitting $5 (£4) a gallon in some
states. The inflation rate for gas prices alone was 60% at a time, largely because of
repercussions from Russia’s invasion of Ukraine.
Rising oil prices and lingering Covid-19 supply chain issues kept food prices elevated. A
shortage on semiconductor chips continued into the first half of 2022, keeping new and used
car prices high.
Even when inflation started coming down from its peak in June, core inflation, which is the
price of all goods and services except for the volatile energy and food markets, went up in
September to 6.6%, showing just how widespread inflation was.
The last few months have finally seen inflation coming down, at rates lower than economists
had expected. In November, inflation was at 7.1%, the lowest rate this year.
Canada also saw multi-decade highs in inflation, hitting 5.1% in February 2022 and further
increasing to 6.7% two months later.[114] In April, inflation rose again to 6.8%, before
jumping to 7.7% in May, the highest ever since 1983.
In July 2022, Mexico's INEGI reported a year-on-year increase in consumer prices of 8.15%,
against a Central Bank target of 2–4%
• Europe:

Figure 1: Inflation rate of the euro area (source: CEIC DATA)

Inflation has surged across Europe since late 2021, with economies across the continent
experiencing their highest inflation rates in decades. The inflation rate of the European Union
reached a record high of 11.5 percent in October 2022. Prior to late 2021, the inflation rate in
the EU was highest in July 2008, when it was 4.4 percent and lowest in January 2015, when
prices were falling by 0.5 percent. October was also when the inflation rate of the United
Kingdom appears to have peaked, reaching 11.1 percent. This recent and rapid rise in prices
in late 2021 has come after a relatively long period of low inflation, with the inflation rate
remaining below three percent between January 2012 and August 2021. Among EU member
states, the inflation rate was highest in Hungary, which reported an inflation rate of 25
percent in December 2022, with 15 other member states also experiencing a double-digit
inflation rate in this month. By contrast, Spain experienced the lowest inflation rate in the
EU, with prices rising by approximately 5.5 percent.
As of March 2023, the inflation rate in the European Union was eight percent, with prices
rising fastest in Hungary, which had an inflation rate of 25.6 percent. By contrast, the
inflation rate in Luxembourg was 2.9 percent, the lowest in the EU during this month.. Before
the recent rises in inflation, price rises in the EU had been kept at relatively low levels, with
the inflation rate remaining below three percent between January 2012 and August 2021.
• China:
China Consumer Price Index (CPI) Source: National Bureau of Statistics

• North Africa and Middle East:

Countries in North Africa were disproportionally affected by inflation. Tunisia went through
a crisis triggered by soaring energy prices and unprecedented inflation of foods in 2022.
Moroccan household finances also were negatively affected by imported inflation. Annual
inflation rates in North African countries rose to 15.3 percent compared to 6.4 percent in
2021, according to the Central Agency for Public Mobilization and Statistics.
In some North African countries, the inflation surge has encouraged hoarding practices by
consumers. Price increases for basic food staples, such as coffee, were particularly high in
parts of Asia and North Africa, where people spend a higher proportion of income on food
and fuel than in the United States and Europe.
In Turkey, retail prices rose 9.65% in December compared to November, for an annual rate of
34%. Some of the largest increases were for electricity, natural gas, and gasoline. The
economy was further strained by a currency crisis caused by a series of rate cuts by the
central bank; the Turkish lira lost 44% of its value against the dollar during 2021.[85] By
August 2022, Turkey's inflation rate was 80.21%.
• Sub-Saharan Africa
According to the IMF, median inflation approached 9% in August. Rising prices of food and
"tradable goods like household products" have contributed most to this increase.
• South America:
In Brazil, inflation hit its highest rate since 2003—prices rose 10.74% in November 2021
compared to November 2020. Economists predicted that inflation has peaked and that in fact
the economy may be headed for recession, in part due to aggressive interest rate increases by
the central bank.
According to Austing Rating data, Brazil ended 2022 with the sixth lowest G20 inflation rate.
Inflation recorded in Brazil in 2022 was below the United States for the first time in 15 years,
in addition to being lower than that of the United Kingdom and the 6th lowest in the G20
(group of the 19 largest and most important economies in the world and the European Union).
In Argentina, a country with a chronic inflation problem, the interest rate was hiked to 69.5%
in August as inflation has further deteriorated hitting a 20-year high at 70% and is forecasted
to top 90% by the end of the year. Inflation hit past 100% in February 2023 for the first time
since 1991.
Chile had low inflation for several years thanks to the monetary policy of its autonomous
central bank. However, in 2022 there was a record intranual inflation of 14.1%, the highest in
the last 30 years. There is a consensus among economists that Chilean inflation is mainly
caused by endogenous factors, especially the aggressive expansionary policies during the
COVID-19 pandemic and the massive withdrawals from pension funds. Economists have also
predicted a possible recession by 2023 due to high interest rates to combat inflation.
• Some other areas:
In April 2022, the Philippines recorded 6.1% inflation, its highest since October 2018. The
Philippine Statistics Authority forecasted that the number would most likely be higher in the
following months. President Bongbong Marcos claimed that the record inflation rate was "not
that high". On January 5, 2023, the Philippines rapidly increased to a record-breaking 8.1%
inflation from December 2022
Inflation in New Zealand exceeded forecasts in 2022 July, reaching 7.3% which is the highest
since 1990. Economists at ANZ reportedly said they expected faster interest rate increases to
counteract inflationary pressures.
In Fiji, inflation rose to 4.7% in April 2022 compared to –2.4% in 2021. Food prices rose by
6.9% in April 2022, fuel increased by 25.2%, kerosene by 28.5% and gas by 27.7%
2.2. In Vietnam
 Figure 2: Vietnam's inflation rate, source: General Statistics Office of Vietnam
The annual inflation rate in Vietnam increased to 4.89 percent in January of 2023 from 4.55
percent in December 2022. It was the highest inflation rate since March 2020, due to a faster
rise in prices of both food & catering services (6.08 percent vs 5.21 percent in December) and
textile, footwear, and hat (2.80 percent vs 2.43 percent while transport prices rebounded
slightly (0.05 percent vs -0.16 percent). Meantime, prices continued to increase for both
housing & construction materials (6.94 percent vs 7.14 percent) and education (11.60 percent
vs 11.80 percent). Annual core inflation, which excludes volatile items, advanced by 5.21
percent, the fresh record peak, after a 4.99 rise in December. On a monthly basis, consumer
prices were up 0.52 percent in January, recovering from a 0.01 percent drop in December.
The annual inflation rate in Vietnam fell to a 14-month low of 2.43 percent in May 2023 from
2.81 percent in the previous month, due to a slowdown in food prices amid faster falls in
transport prices. The cost advanced at a softer pace for food & catering services (3.58 percent
vs 3.62 percent in April), textile, footwear, & hats (2.22 percent vs 2.31 percent), and
education (5.70 percent vs 5.98 percent). Meanwhile, prices of housing & construction
materials continued to increase (6.40 percent vs 5.20 percent). In addition, transport prices
shrank faster (-8.94 percent vs -3.94 percent). Annual core inflation, which excludes volatile
items, eased to a seven-month low of 4.54 percent in May from 4.56 percent in April. On a
monthly basis, consumer prices edged up 0.01 percent in May, after a 0.34 percent fall in the
prior month.
 Figure 3: Food price increase in Vietnam (source: General Statistics Office of Vietnam)
3. Cause
Just as the economy began to level out and supply chain issues started to heal, a major foreign
conflict occurred. This caused the perfect storm of demand-pull and cost-push inflation,
causing some of the highest inflation rates in history.
3.1. The Covid-19 pandemic- pandemic-related economic dislocation, supply chain
problems, the fiscal and monetary stimuli provided in 2020 and 2021 by governments
and central banks around the world in response to the pandemic, and price gouging
The pandemic caused a classic case of demand-pull inflation. A few factors can cause
demand-pull inflation; however, in this case, it is mainly caused by household spending.
Throughout history, demand-pull inflation often happened after wartime. For example, when
World War II ended, the country's economy experienced a boom it was not quite expecting.
Because people were celebrating the war's end and living more carefreely, they began to
make more purchases than they had in previous years. This caused a rapid shift in the
economy as demand soared above supply.
A similar phenomenon occurred when lockdowns were lifted, and people became more
comfortable resuming everyday life as the pandemic began to wane.
People began buying again, but the purchases happened more rapidly than the slowed supply
chain could handle. And when the demand is that much greater than the supply, shortages and
price increases occur.
3.2. Russia's invasion of Ukraine
Politics aside, foreign and domestic conflict affects the functions of the world's economy.
Russia and Ukraine supply the world with essential commodities, and because of the supply
chain disruption the war has caused, sanctions were imposed and higher prices became
inevitable.
With these two countries at war, significant shifts and shortages are happening worldwide.
There are four key areas where the world is seeing the harshest effects:
• Food: Russia and Ukraine supply the world with one-fourth of its wheat, one-fifth of
its cornand coarse grains and 80% of its sunflower oil. Because of the conflict, global food
prices have increased by 17%. Before the invasion, Ukraine accounted for 11.5% of the
world's wheat crop market, and contributed 17% of the world's corn crop export market, and
the invasion caused wheat and corn from Ukraine unable to reach international market,
causing shortages, and result in dramatic rise in prices, that exacerbated to foodstuffs and
biodiesel prices
• Transport: Russia is one of the world's foremost suppliers of palladium, mine
production, platinum, titanium and fertilizer. These commodities contribute to significant
industries like automobiles, aircraft and farming. Mark Zandi, chief economist of Moody's
Analytics, analyzed United States Consumer Price Index components following the May
2022 report that showed an 8.6% inflation rate in the U.S. He found that by then the 2022
Russian invasion of Ukraine was the principal cause of higher inflation, comprising 3.5% of
the 8.6%. He said oil and commodities prices jumped in anticipation of and response to the
invasion, leading to higher gasoline prices. Resulting higher diesel prices led to higher
transportation costs for consumer goods, notably food.
• Energy: Russia is a massive contributor to the world's oil and energy industry. In
June, the price of Brent oil surged to $120 per barrel, and overall energy prices have
increased by 30%. Energy used in the U.S. accounts for 7.6% of the CPI, leading to further
inflation and a global energy crisis. Russian gas supply curbs, which began in 2021,
aggravated energy crunch caused by demand growth and global supply limitations during the
post pandemic restrictions recovery. In Europe, gas prices increased by more than 450%, and
electricity by 230% in less than a year. On February 22, 2022, before the Russian invasion,
the German Government froze the Nord Stream 2 pipeline between Russia and Germany,
causing natural gas prices to rise significantly
• Financial Markets: When stocks are unpredictable, like during a conflict, global stock
prices generally see adverse effects due to tentative trades and divestments.
3.3. Other causes
• A recent analysis by the Federal Reserve Bank of Kansas City ascertained the role
America is playing in the current inflationary trend worldwide. Before 2019, the U.S. was
seen as a last resort for consumer spending during a global recession, but after 2020, U.S.
exports have contributed to foreign inflation. At the same time, energy prices have gone up as
well as the value of the U.S. dollar, which both increased monetary pressures on nations that
mostly rely on energy imports. In effect, the strength of the U.S. dollar and sanctions on
energy commodities (Following Russia's invasion of Ukraine beginning on 24 February
2022, the United States, the European Union, and other Western countries introduced or
significantly expanded sanctions covering Russian President Vladimir Putin and other
government members, and banned "selected Russian banks" from using the SWIFT
international payments system, triggering the 2022 Russian financial crisis and a massive
international boycott of Russia and Belarus, which supports the invasion.) have contributed to
global inflation in 2022.[5]
4. Solutions of some countries
4.1. America
The main tool the Federal Reserve has to address inflation is to adjust interest rates, which is
meant to temper spending by making borrowing money more expensive.
Starting in March 2022, the Fed started hiking up interest rates at a pretty aggressive rate. The
Fed is also allowing up to $60 billion in Treasurys and $35 billion in agency mortgage-
backed securities (MBS) to mature and roll off its more than $8.5 trillion balance sheet per
month. The Federal Open Market Committee (FOMC) began raising interest rates starting in
March 2022 in an attempt to bring inflation back down to its 2% long-term target. After four
consecutive rate hikes of 75 basis point (bps) each, the FOMC has now raised rates by a total
of 3.75% in less than nine months. In December, the Fed raised interest rates for the seventh
time this year, bringing interest rates from 4.25% to 4.5%.
Economists say the raised interest rates have only played a small role so far in getting the
inflation rate down. So far, the raised interest rates have been mostly felt in the housing
market, since rates directly impact mortgages. Home sales have been falling since February.
The Fed has a dual mandate – keeping prices stable and maximizing employment. Right now
it is focused on getting inflation back down to its target of 2% and the biggest victim of that
policy is likely to be its second mandate – keeping people in work.
So far the jobs market has shrugged off inflation and the Fed’s rate hikes. While price
pressures have been high, the unemployment rate – at 3.7% in November – is around the
same rate that it was before the pandemic, which was a record low.
As the Fed continues to increase interest rates, unemployment will rise. The Fed is projecting
unemployment will rise to 4.6% next year. Other estimates, like Wells Fargo, have the peak
closer to 5.5%.
4.2. Europe
--Energy price guarantee policy:
The eurozone's inflation outlook is uncertain, and that is the effect of governments imposing
price ceilings on electricity prices to help ease household difficulties in the winter.
The German government on September 29 said it would impose a ceiling on gas and
electricity prices for consumers and companies at certain consumption levels. Users will have
to pay the market price if above that level. In addition, Germany will also implement an
extension of the value-added tax cut until next year.
- Interest rate hike: The European Central Bank (ECB) has confirmed that it will raise interest
rates to reduce the soaring consumer prices across the Eurozone. The ECB President said
higher interest rates would "warm the risk of persistently rising inflation expectations". The
ECB's forecasts for inflation in the Eurozone have been revised up significantly over the past
year, to 8.1 percent in 2022, 5.5 percent in 2023, and 2.3 percent in 2024.
4.3. Australia
The Australian economy, much like the global economic landscape, was characterised by
surging inflation and cost of living in 2022. Inflation surpassed 7 per cent in the September
2022 quarter, averaging an expected 6.4 per cent for the 2022 calendar year. Underlying,
which the Reserve Bank of Australia (RBA) inflation to focus on, averaged an expected 4.8
per cent in 2022, well above the RBA's 2–3 per cent inflation target.

In response to higher inflation, the RBA Board commenced a phase of monetary policy
tightening in May 2022. In every month from May to December, the target rate was raised
from a record low 0.1 per cent to 3.10 per cent. This had significant ramifications for the cost
of living, given the mortgage rate pressures stemming from higher rates. In this respect, the
cost of living for employees, who have benefited from a prolonged period of low interest
rates, increased inordinately in 2022 (compared to other groups such as age pensioners)
Fiscal policy during periods of high inflation is likely to be constrained, preeminent to avoid
contributing to demand. In this respect, the federal budget announced in October was sensibly
reserved. A primary initiative in the budget was an increase in child-care subsidies, which
will directly reduce inflation in 2023 via child-care costs. The quantum of the reduction is,
however, unclear due to uncertainty about impending fee hikes in child care.
III. Policy to Deal with Abuse in Vietnam
Monetary Policy:
In the first 6 months of 2021, the SBV has operated an active and flexible monetary policy,
closely coordinated with fiscal policy and other macroeconomic policies to control inflation
according to the target and support stabilize the macro-economy, contribute to the recovery of
economic growth, and maintain the stability of the currency and foreign exchange markets.
On the basis of the economic growth target for 2021 and inflation set by the National
Assembly and the Government since the beginning of the year, the State Bank has set a
credit-oriented target of about 12% for the whole year of 2021 and will be adjusted to the
next level. adjusted in accordance with developments and actual situations, can be up to 14-
15%.
Recently, the State Bank has adjusted the current operating interest rates, increasing by 1%
and taking effect from October 25, 22. This is the 2nd time raising the operating interest rate
of the State Bank in October 2022. The State Bank adjusts the interest rates as follows:
refinancing interest rate to 6%/year; discount rate to 4.5%/year; overnight lending rate to
7.0%/year. At the same time, the State Bank also raised the demand interest rate to 1%/year;
interest rate under 6 months is 6%.
Right after the State Bank adjusted the operating interest rates by 1%, many commercial
banks also adjusted their deposit and lending rates. Quite a lot of people are interested in
saving when the interest rate increases. Thanks to that, the amount of deposits... from the
population into the system also increased, helping to ensure liquidity safety for banks. The
deposit interest rate raised by banks is from 0.3 - 1%/year depending on the term. With terms
of less than 6 months, savings interest ranges from 4.1 to 5.9%/year. With a 12-month term,
the interest rate is from 6.8% to the highest of 8.8%/year, there is a wide difference between
banks. The deposit interest rate raised by banks is from 0.3 - 1%/year depending on the term.
With terms of less than 6 months, savings interest ranges from 4.1 to 5.9%/year. With a 12-
month term, the interest rate is from 6.8% to the highest of 8.8%/year, there is a wide
difference between banks.

Reducing pressure on rising prices for people: significantly reducing pressure on the price
level, such as reducing value-added tax on some groups of goods and services from 10% to
8% from February 1, 2022; reduce 50% of the environmental protection tax rate for jet fuel
from January 1, 2022 to the end of December 31, 2022; reducing the collection of 37 fees and
charges in the first 6 months of 2022; 50% reduction of environmental protection tax on
gasoline from April 1, 2022...
In Vietnam, CPI increased mainly due to the influence of petrol prices. Since the beginning
of 2022, gasoline prices have been adjusted 16 times and in the past year, gasoline prices
have increased by 51.83%.
IV. Summary
From 2021 to now, inflation has increased in most countries around the world, peaking in
2022 with the highest inflation index in several decades. Due to the Covid-19 pandemic
factors, policies during the pandemic and after the pandemic along with the war between
Russia and Ukraine, sanctions against Russia, etc. have caused insufficient supply, especially
electricity, energy, oil, etc. People all over the world face rising prices. Faced with that
situation, countries with rising inflation have tried all ways to control inflation, the main tool
is monetary policy to increase interest rates and ensure the prices of food, energy, etc.
America, European countries, Australia,… and Vietnam. As a result, the inflation rate fell in
the first months of 2023: in the US the highest inflation rate was 9.1% in June 2022 to April
2023, falling to 4.9%; in Europe the highest inflation rate was 11,507 in October, 2022,
falling to 8,328 in March, 2023; In China, the highest inflation rate was 2.8% in September
2022, falling to 1% in April 2023. In Vietnam, after the state bank raised interest rates and the
government implemented it. With subsidy policies such as tax reduction, price ceiling, etc.,
inflation will also decrease to 2.81% in April, 2023 from the highest level of 4.89% in
January, 2023. price increase is no longer too serious for many countries, many countries
have also found solutions to energy supply problems in the future and predict that inflation
will decrease further and the economy will gradually recover.