Economic Survey 2022 noted that in 2021, inflation picked up globally as economic activity revived with opening-up of economies. COVID-19 related stimulus spending, mainly in the form of discretionary handouts to households in major economies, along with pent up demand fueling consumer spending, pushed inflation up in both advanced and emerging economies. In the advanced economies, inflation has increased from 0.7 per cent in 2020 to around 3.1 per cent in 2021. The surge in energy, food, non-food commodities, and input prices, supply constraints, disruption of global supply chains, and rising freight costs across the globe stoked global inflation during the year. Crude oil prices also witnessed an upswing during the year on the back of increased demand from recovering economies and supply cuts by the Organization of the Petroleum Exporting Countries and its allies.
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