Inflation sparks calls for higher pay

LONDON/OUAGADOUGOU/NAIROBI－Rising food costs. Soaring fuel bills. Wages that are not keeping pace. Inflation is plundering people's wallets, sparking a wave of protests and workers' strikes around the world.

Last week alone saw protests by nurses in Zimbabwe, unionized workers in Belgium, railway workers in Britain, Indigenous people in Ecuador, hundreds of US pilots and some European airline workers.

Economists said Russia's conflict in Ukraine amplified inflation by further pushing up the cost of energy and prices of fertilizer, grains and cooking oils as farmers struggle to grow and export crops in one of the world's key agricultural regions.

As prices rise, inflation threatens to exacerbate inequalities and widen the gap between billions of people struggling to cover their costs and those who are able to keep spending.

"We are not all in this together. How many of the richest even know what a loaf of bread costs? They don't really, they just absorb the prices," said Matt Grainger, head of inequality policy at nonprofit Oxfam. "This isn't just a stand-alone crisis. It's coming off the back of an appalling pandemic that fueled increased inequality worldwide. I think we will see more and more protests."

The demonstrations have caught the attention of governments, which have responded to soaring consumer prices with support measures like expanded subsidies for utility bills and cuts to fuel taxes. Often, that offers little relief because energy markets are volatile. Central banks are trying to ease inflation by raising interest rates.

Meanwhile, striking workers have pressured employers to engage in talks on raising wages to keep up with rising prices.

Eddie Dempsey, a senior official with Britain's Rail, Maritime and Transport Union, which brought UK train services to a near standstill with strikes last week, said there are going to be more demands for pay increases across other sectors. "It's about time Britain had a pay rise. Wages have been falling for 30 years and corporate profits have been going through the roof," Dempsey said.

Dire situation

The situation is particularly dire for refugees and the poor in conflict areas such as Afghanistan and Yemen, where fighting has forced people to flee their homes and rely on aid organizations as they struggle to raise money for themselves.

For the middle class in Europe, it is becoming more expensive to commute to work and put food on the table.

"Increase our salaries. Now!" chanted thousands of unionized workers in Brussels last week.

The International Monetary Fund said inflation will average about 6 percent in advanced economies and nearly 9 percent in emerging and developing economies this year. Global economic growth is projected to slow by 40 percent to 3.6 percent this year and next. The IMF is calling on governments to focus support packages on those most in need to avoid triggering a recession.

The slowdown comes as the COVID-19 pandemic is still gripping industries worldwide from manufacturing to tourism. Climate change and drought are hitting agricultural production in some countries, prompting export bans that push up food prices even further.

Rising food prices are particularly painful in low-income countries, where 42 percent of household incomes are spent on food, said Peter Ceretti, an analyst tracking food security at risk advisory firm Eurasia Group.

Agencies Via Xinhua