A Worldwide Problem - Look around. Inflation is not just an American problem; it's a global problem.
Inflation in the UK has topped 10%. That's right. £10 today is worth roughly £1 less than a year ago. And the kicker? This inflation is expected to only get worse in the remainder of this calendar year.
Even as US inflation has shown signs of at least moving sideways, the UK ain't seen nothin' yet. And that kind of sucks for everyone. Inflation is a tax; we like to call it regressive, as in it hits the poorest the hardest.
Rising energy costs in Europe are likely going to make things a lot worse before they get better.
Additional thrash in the global commodities markets can really twist this knife, making input goods in Europe exorbitantly expensive and crushing manufacturing on the continent.
The Nord Stream Pipeline chicanery is not over; Europeans are prepping for a long, cold winter, and when we say cold, we mean expensive.
The cost of natural gas in Europe specifically is going to make this winter real troublesome. Adjusting the thermostat a couple of degrees doesn't really change things for you when your source of raw natgas has gone up in price by several hundred percent.
Rumor has it that inflation in the UK could hit as high as 13%. 13%... not a very lucky number.
While this logic is flawed, there is a price cap on energy costs right now that is due to reset/expire in October, which will drive prices up even higher, forcing even more inflation into the pipeline.
Another factor here is the Brexit decision; this has made importing goods to the island more expensive, driving up prices for just about everything.
Factor in decreasing real wages because of wage growth that hasn't paced inflation, and you have a recipe for disaster.
Cheerio, ol' chaps. Good luck.