The cost of living crisis is global – US inflation just hit another 40-year high

With US inflation running at 7.5%, it’s clear that the cost of living crisis is not confined to the UK. John Stepek looks at the likely reaction from governments and central banks, and what it means for you.

Supermarket in the US
The cost of living is rising around the world
(Image credit: © Joe Raedle/Getty Images)

US inflation, once again, came in higher than expected yesterday.

It’s been happening so often recently, that you’d think that markets might start to expect that.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.