This year, global inflation has surged to levels not seen in more than a decade and will remain elevated for years to come.

That view was echoed by Federal Reserve Chair Jerome Powell on Friday, stating that “inflationary pressure is likely to last longer than previously expected” and the world should prepare themselves for several years of higher inflation.

Signs of inflation are growing more obvious day by day, from soaring shipping costs, rising energy bills, food and general commodity prices to shortages of products and labour.

Consumers around the world are now paying more for goods and services, than they did a year ago and that trend shows no signs of fading anytime soon.

Recent figures published by the Bureau of Labor Statistics revealed U.S Consumer Price Inflation accelerating by 5.4% in September – its largest increase since July 2008. While, the Fed’s preferred gauge of inflation, the Core Personal Consumption Expenditures Price index, soared to a whopping 30-year high.

Just like the United States, every economy around the world right now, is experiencing a sharp and uncontrollable surge in inflation.

Consumer Price Inflation in Canada rose at its fastest rate in 18 years in September, to hit 4.4%, up from 4.1% in August – its highest level since February 2003.

Elsewhere in the UK inflation hit 4% last month – the largest jump since 1997 and is forecast to exceed 5% by the end of the year. Meanwhile, Eurozone inflation hit a 13-year high of 3.4%.

According to economists, global inflation figures for the next five years could leapt into the double digits. That tops the inflationary pressures that surged in 2008, just before the financial crisis and a previous peak in early 2005, when the housing market overheated, just before it crashed.

Looking ahead to this week, the major market-moving events that traders will be closely watching for clues on the Gold’s next big move include; U.S Q3 GDP figures and the Fed’s preferred measure of inflation – PCE price data.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

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