All Things Point to One Way for Inflation: Up, Says Richard Koo

 Climate change is driving sharp increases in fossil fuel prices, Global supply and demand disruptions have also been fueling 

Richard Koo, Chief Economist at Nomura Research Institute, discussed the inflationary threats from rising energy costs,

The sharp increase in oil, gas and coal prices began around spring 2021, long before the Russia-Ukraine conflict.

While the immediate trigger was the economic recovery after the Covid-19 lockdowns,

the increases have exceeded what would be expected under normal circumstances.

The supply situation is problematic in a globalized supply chain. Covid-19 has affected countries unevenly,

The result is that companies are unable to get all the outsourced components they need to finish a product, making planning difficult.