A universal basic income funded through a progressive tax structure would be a long-term dampening mechanism on inflation driven by external costs.
Consumer prices in 2021 rose 7 percent over the past year, making this the largest rise in consumer prices over a 12-month period since 1982.
C.J. Polychroniou: Inflation has increased to surprising levels in 2021, with the U.S. experiencing one of the biggest increases, and looks like it will continue to climb in 2022. Why is inflation happening now, and to what extent is it affected by the pandemic?: Inflation seems to have been driven through trade openness and a growing trade deficit in recent decades; with a specific increase from 2020, despiteduring the COVID pandemic.
The dominant narrative from the UN Food and Agricultural Organization and Governments, and therefore the media and wider public understanding, is that nominal prices have increased significantly recently. Headlines highlight that “Global food prices rose ‘sharply’ during 2021,” on the basis that the FAO’s “Food Price Index, which tracks monthly changes in international prices, averaged 125.
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