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Economics

Why Inflation’s Fallout Is Becoming Increasingly Global

The US rate is at a 40-year high, the UK is effectively in recession and demand for Chinese goods is slowing. And it may get worse.

A customer passes between stalls at a street market in London.
A customer passes between stalls at a street market in London.Photographer: Chris Ratcliffe/Bloomberg

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US inflation is at a 40-year high and the UK is effectively in recession as demand slows for Chinese-made goods. Prime Minister Boris Johnson, though addressing the British economy, could have been speaking for the whole world when he said in a recent interview that “we’re going to have a difficult period, and we’ve got to be absolutely clear with people it is going to be difficult, and the government cannot solve every problem.”