The velocity at which money circulates in our economy had declined and may further stoke inflation as it regains normalcy
Inflation worries are rapidly spreading across the world. Price pressures are not the same across countries, despite the fact that all of them have been hit by very similar supply shocks over the past two years. What is different is the extent of the demand stimulus that various governments have injected into their economies in response to the crisis. It is thus quite likely that the extent of stimulus explains the different shades on a global inflation heat map, though trade intensity will also play a part.