Enormous price increases await us, the forecast of the head of Twitter is shocking and Slovaks should also be on the lookout – Startitup

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The founder of the social network Twitter and at the same time its CEO Jack Dorsey issued a warning against rising inflation in the USA on Friday evening. Inflation is set to rise so that it even reaches hyperinflation.

“Hyperinflation will change everything. It’s happening, “ Dorsey wrote in his tweet. There was also a discussion under his post where social network users wanted to know more about this warning. Dorsey only briefly explained that this would happen soon in the United States and then around the world.

Hyperinflation refers to a period of excessive price increases in a very short period of time. This is inflation, which is rising by more than 50% every month. With hyperinflation, it is possible to monitor price increases every day. It is mostly the result of events such as war, supply depletion or a natural disaster with fatal consequences. The result is often the collapse of the economy or currency.

source: Unsplash / @emkal

The highest inflation in the last 30 years

In the US, however, experts have long drawn attention to rising inflation over the past year. However, Dorsey is the first to warn of hyperinflation. Experts are not yet inclined to such a prediction.

Portal CNBC informs that consumer product inflation is approaching its 30-year high this year. Compared to the previous year, prices were to increase by 5.4%. An acceptable price increase is considered to be 2%.

The reason for the increase in prices should be, among other things, rising energy costs. Fuel is expected to have the highest price increase in America, while their month-on-month increase in September was as much as 1.2%. They increased by 42.6% year-on-year. Meat recorded a huge month-on-month increase in food, by 3.3%. This rose by 12% percent year on year.

Suppliers do not catch up, shipments are in ports

Portal Business Insider points out that Dorsey’s tweet comes at a time of supply disruption, causing prices to rise. The supply sector in the United States is currently weakening due to people starting to buy and spend more money on consumer products than usual. This meant that the chains did not have time to replenish the goods.

Some outstanding orders are in ports, thus hampering supplies. Companies are failing to match current consumer demand with supply. Suppliers are also struggling with staff shortages. Thousands of employees are missing in the USA, especially in key positions. FOX 11 states that only truck drivers are missing 80-thousand.

Former US Treasury Secretary Larry Summers also warns of rapidly rising inflation. However, the current minister in this position, Janet Yellen, also tried to calm the debate on the state of the economy. The one on the State of the Union television show CNN she said she expects inflation to return to an acceptable percentage again next year. He does not share the concerns of the former minister.

“I think they were wrong. I don’t think we will lose control of inflation. “ said the minister in the session. “It’s something that obviously worries them, but we haven’t lost control. “

former US Treasury Secretary

source: TASR via AP Photo / Susan Walsh

Slovakia is also fighting inflation

High inflation is not just a problem for the United States. It is felt by almost the whole world, including Slovakia. The increase in consumer prices in Slovakia reached 4.6% in September, which is the highest since November 2011. The Statistical Office (SO) of the Slovak Republic informed.

Prices were higher than in September 2020 in all 12 monitored branches. The year-on-year value of inflation was boosted by the growth of food prices by 4.3%, which is the highest value since May 2020. High food growth was recorded by those food groups that significantly increased prices compared to the previous month, namely fruit, vegetables and meat.

The largest item in the structure of expenditures of Slovak households, housing and energy, increased price growth from 2.2% in August to 2.6% in September. This value increased for the fifth month in a row, mainly due to imputed rents, which reflect more expensive building materials, the TASR agency reported.

Sources: CNBC, Business Insider, CNN, FOX 11, TASR