Misplaced complacency.

"Persistently high inflation will haunt the world economy this year, according to a Reuters poll of economists who trimmed their global growth outlook on worries of slowing demand and the risk interest rates would rise faster than assumed so far," ET. Three months back economists and central banks agreed that inflation was transitory but, "While price pressures are still expected to ease in 2023, the inflation outlook is much stickier than three months ago." "After expanding 5.8% last year, the world economy is expected to slow to 4.3% growth in 2022," and "is seen slowing further to 3.8% and 3.2% in 2023 and 2024 respectively." In Britain, "Businesses...told of the grim impacts of soaring inflation, with hotels forced to close floors to save money on energy bills, shops locked in a 'fight to survive' and Iceland warning rising prices were forcing customers to food banks," DM. Iceland is a company that sells frozen foods in the UK. "The rate of Consumer Price Index inflation in Britain has increased by more than expected to 5.4 percent - up from 5.1 percent in November and its highest rate in 30 years." In December, "The Bank of England...hiked interest rates for the first time since the onset of the pandemic, increasing its main interest rate to 0.25% from its historic low of 0.1% as inflation pressures mount," CNBC. "Economists expect rates to then rise perhaps three more times this year, reaching as high as 1% by the summer," BS. "Prior to the financial crash, 'normal' rates were about 5%. We might now see a new normal at around 2%." Food, skincare products, furniture and used cars are contributing to high inflation in Britain, BBC. Grocery prices have risen 3-4%, skincare products by 9.6%, furniture by 7.4% and used cars by 28%. "US economic growth likely accelerated in the fourth quarter as businesses replenished depleted inventories to meet strong demand for goods, helping the nation to log its best performance in nearly four decades in 2021," ET. "The momentum, however, appears to have faded by December." "The Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month," and "a decision would be made soon on when to start shrinking the central bank's more than $8 trillion portfolio of US government bonds and mortgage backed securities", Reuters. "South Korea has increased its base rate of interest to where it was before the pandemic, as it tries to contain inflation and soaring household debts," BBC. Consumer inflation for the whole of 2021 jumped to 2.5%. While, "India's benchmark inflation rate, measured by the Consumer Price Index (CPI) firmed up to 5.59% year-on-year in December 2021," ET, the Reserve Bank (RBI) stubbornly stuck to 4% interest rate at its last meeting in December, ET. "Yes, there has been criticism that RBI has fallen behind the curve but only time will tell whether or not India got it right. So far, the approach has served us well," said Deputy Director of RBI Michael Patra. Served who, pray? Income of the poorest 20% of the population has fallen 53% from 2015-16 levels while income for the richest 20% jumped 39%, TIE. The RBI may have time but, with falling income and rising prices, the poor certainly don't. Perhaps, pompous RBI officials should be made to meet the poor. May not be so complacent.