Global Meltdowns Over Cost Of Living Keep Getting Worse

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The cost of living is expected to rise as social unrest all over the world continues, according to the latest analysis.

“Over the coming months, governments across the world are about to get an answer to a burning question: will protests sparked by socioeconomic pressure transform into broader and more disruptive anti-government action?” the analysis from risk firm Verisk Maplecroft stated. 

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Verisk Maplecroft said that the last quarter of this year “saw more countries witness an increase in risks from civil unrest than at any time since the index was released,” adding that “out of 198 countries, 101 saw an increase in risk, compared with only 42 where the risk decreased.”

Inflation has already spurred cost of living crises in developing countries, thanks to socioeconomic tensions such as supply chain issues, high energy costs, and food shortages.

“In December 2020, we warned of a new era of civil unrest, projecting that 75 countries would see an increase in civil unrest risk by August 2022. The reality has been far worse, with 120 countries witnessing an increase in risk since then,” the firm noted.

“With more than 80% of countries around the world seeing inflation above 6%, socioeconomic risks are reaching critical levels,” the analysis explained. “Almost half of all the countries on the CUI are now categorized as high or extreme risk, and a large number of states are expected to experience a further deterioration over the next six months.”

The analysis specifically raised the alarm about the energy crisis in most European countries, especially those affected by the ongoing Russia-Ukraine war. 

“Over the winter, it wouldn’t come as a surprise if some of the developed nations in Europe start to see more serious forms of civil unrest,” said Torbjorn Soltvedt, the firm’s principal analyst for the Middle East and North Africa.

Meanwhile, Jimena Blanco, the company’s chief analyst, said that political events in Latin America “may feed into drivers of unrest.”

“In Argentina, the government is effectively collapsing amid ongoing unrest,” Blanco said. “The question is whether the unrest will escalate into something more profound.”

Wealthy nations aren’t safe either, as the analysis expects that “middle-income countries that were rich enough to offer social protection during the Covid-19 pandemic, but are struggling to maintain high levels of social spending during 2022, are likely to face the highest risk.”

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