If you’re after a ‘cheap’ holiday, given the rising cost of living, the surprising destination of South Sudan seems to be the best bet.
With Turkey’s price increases reaching 70% (the highest amongst G20 nations) and the UK’s climbing to a fresh 30-year high of 7% in March, it seems most countries are experiencing higher-than-desired levels of inflation.
Widespread inflation is forcing millions of households around the world to choose between food, energy and many other life necessities.
Global food prices hit record highs in March, up 33.6% year-on-year, the Food and Agricultural Organisation of the United Nations said, while the World Bank guessed energy prices will surge over 50% in 2022 in the largest commodity shock since the 70s.
Why is global inflation so rampant?
Ongoing supply chain issues, which are stemming from a shift in consumer demand to goods from services, factory closures and poor harvests are all playing a hand in pushing prices higher.
Global gas prices are surging, largely driven by higher post-lockdown energy demand and the West’s sanctions on Russia – the second and third largest gas and oil producer, respectively, in the world.
Labour shortages have ramped up the cost of production, while political tensions have been adding to the ever-increasing problem.
The British Retail Consortium has attributed the high food prices to the impact of energy costs, the war in Ukraine and China’s most recent lockdown.
Which countries have the worst cost of living crisis?
Of the G20 countries, Turkey’s cost of living rose the most to a two-decade high of 70% in the year to April.
Its President has been refusing to raise interest rates and its currency was collapsing as the leader prioritised exports over inflation and currency stability, with transport and food price hikes the most prominent areas.
Venezuela, which has long been well-renowned for colossal inflation levels (hyperinflation), unsurprisingly had the highest global year-on-year March price increase, of 284%. Sudan was close behind in second place at 260%.
At times, prices changed in both countries so swiftly that shops stopped displaying price tags and asked customers to simply ask employees the cost each day.
Back to G20, Argentina and Russia both also had high inflation rates in March, of 55% and 17% respectively, Trading Economics revealed.
Meanwhile, America’s inflation rose to 8.5% in March – its highest since December 1981. The Euro area averaged 7.5% last month.
The lowest inflation levels seen amongst G20 nations in March were 1.2% in Japan and 1.5% in China.
South Sudan, meanwhile, was the only country in the world experiencing deflation in their respective most recent figures. Prices, on average, declined by 8.5% in the year ended December 2021.
There do not seem to be too many signs of these widespread economic problems reversing to more favourable conditions.
In the UK, the Bank of England said Thursday it expects inflation to strike 10% by the year-end, with a recession looming.
This comes even despite its best efforts to offset inflation by hiking interest rates to 1% - the highest level seen in the UK since the aftermath of the last financial crisis in 2009.
So, it really does beg the question as to whether a holiday is affordable in 2022, and if so, where?