ST. PETERSBURG, June 3. /TASS/. The global economy has been hit by an inflation wave because of weakened monetary policy and lower cross-border capital flows, First Deputy Prime Minister of Russia Andrei Belousov said at the St. Petersburg International Economic Forum (SPIEF) on Thursday.
"The inflation wave has affected the world’s economy quite unexpectedly. We know inflation in the US is unprecedentedly high, over 4%. An inflation wave starts in Europe; we see more than 2% where inflation was zero before," Belousov said.
"Most probably, all of them are signs of not merely monetary policy weakening much spoken about now but also of structural changes occurring in consequence of dramatic weakening of contacts between people, reduction of the cross-border flow of goods, capital, workforce and so on," he added.