Inflation is a major concern today. World economy is suffering from high rate of inflation. Main cause of inflation is rising crude oil prices and financial packages given by governments to help economy in recession time. Interest rates are at very low rage. In US inflation rate increased from 2.2 to 2.7 in March. In China inflation is reached very high above 5% in March. Chinese consumers are suffering from high housing and food prices . Chinese central bank is trying to keep liquidity in control. Inflation is already record high in England.
Economists believe that crude oil may remain above $100 or go up.
Gold and silver are at record high. Currencies are showing weakness. So in future controlling inflation is a big challenge for central banks.
Increasing interest rates may hit economic growth. Crude oil prices are out of control. It is a big challenge.
