Inflation sparks global wave of protests for higher pay, aid

Rising food prices. Soaring fuel bills. Wages that don’t keep up with inflation. Inflation is taking away people’s money, prompting protests and workers’ strike across the globe.

This week, protests were held by the political opposition in Pakistan and nurses in Zimbabwe. Unionized workers in Belgium, British railway workers, Indigenous people in Ecuador, and hundreds of pilots from the U.S., as well as some European airline workers. After weeks of political turmoil, Sri Lanka’s prime Minister declared an economic crisis Wednesday.

Economists claim that Russia’s war against Ukraine has exacerbated inflation by increasing the cost of energy, as well as the prices of fertilizer and grains. This is because farmers are unable to grow or export crops in one the most important agricultural regions of the world.

Inflation is a threat to inequalities. It will increase prices and widen the gap between billions who struggle to pay their bills and those who can keep spending.

“We are not all in it together.” saidMatt Grainger is the Oxfam head of inequality policy. “How many of the wealthiest know how much a loaf bread costs?” They don’t, they just absorb the costs.

Oxfam has called on the Group of 7 industrialized nations to provide debt relief for developing economies and tax corporations on excess profits.

“This isn’t a standalone crisis. It’s coming off the back a terrible pandemic that drove increased inequality worldwide,” Grainger said. “I believe we will see more protests.”

These demonstrations caught the attention government officials who responded to rising consumer prices with support measures such as increased subsidies for utility bills or cuts in fuel taxes. This is often ineffective as energy markets are volatile and it offers little relief. Inflation is being controlled by central banks, who raise interest rates.

Striking workers are urging employers to talk about raising wages to keep up to rising prices.

Eddie Dempsey, a senior representative with Britain’s Rail, Maritime and Transport Union, brought U.K. rail services to a halt with strikes this week. saidThere will be greater demand for pay increases in other sectors.

“It’s time for Britain to get a raise in wages. Dempsey: “Wages have been falling for the past 30 years and corporate profits are going through the roof.” said.

Last week saw thousands of South Korean truckers end an eight-day strike that caused delays in shipment. They demanded minimum wage guarantees and increased fuel prices. Truckers in Spain staged a strike a few months earlier to protest fuel prices. They were some 10,000 km (6,200 miles away).

After violent protests against fuel prices and food prices in April, Peru’s government issued a temporary curfew. Truckers and other transport workers had also gone on strike and blocked major highways.

Protests over living costs forced Sri Lanka’s prime minster to resign last month. Middle-class families claim they are forced to skip meals due to the economic crisis in Sri Lanka, leading them to consider leaving the country.

This is especially true of the poor and refugees living in conflict zones like Afghanistan, Yemen and Myanmar. They have been forced from their homes to flee and have to rely upon aid organizations that are struggling to raise funds.

“How much should I pay for my kidney?” This is the most common question that Kenya’s largest hospital receives. This week, Kenyatta National Hospital reminded Facebook users that selling human organs was illegal.

It’s becoming more expensive for the middle class to commute to work in Europe and to put food on the tables.

“Increase our wages. Now!” This week, thousands of unionized workers in Brussels chanted “Now!”

Genevieve Cordier protested, “I came here because I wanted to defend citizens’ purchasing power because demonstrating is how to make change,” said. “We cannot cope any longer. Even with two salaries, both of us work and we can’t get our heads above water.

In some countries, government corruption and mismanagement are the main causes of economic turmoil, especially in politically unstable countries like Iraq and Lebanon.

Protests reflect growing financial insecurity. Here’s how it has played out in Africa.

• 
  After refusing a government offer of a pay rise of 100%, Zimbabwe’s health care professionals went on strike. The nurses claim that the offer is too low to offset skyrocketing inflation at 130%.
• 
  Kenyans protested online and in the streets as the cost of food rose by 12% over the past year.
• 
  Last week, one of Tunisia’s most powerful labor unions called for a nationwide strike in the public sector. The North African country is facing a worsening economic crisis.
• 
  Hundreds of activists protested the rising cost to live in Burkina Faso this month. According to UN World Food Program, the cost of corn and millet have risen by more than 60% since last years. Some provinces even saw prices as high as 122%.

“As far the cost of living keeps increasing, we realized that authorities have betrayed us,” saidPresident of the civil society coalition behind protests in West Africa, Issaka Porgo

Protesters denounce the military junta that overthrew the democratically elected president in Jan. They are accused of giving themselves a pay increase while the population is experiencing rising prices.

According to the International Monetary Fund inflation will average around 6% in advanced economies, and almost 9% in emerging or developing economies this year. Global economic growth is expected to slow by 40% to 3.6% this year and next. The IMF has asked governments to provide support packages to the most vulnerable to avoid triggering a recession.

This slowdown is due to the COVID-19 epidemic that continues to plague industries across the globe, from tourism and manufacturing. Some countries are experiencing drought and climate change that are affecting agricultural production. This has led to export bans which have increased food prices.

Rising food costs are particularly severe in low-income nations, where 42% household incomes go towards food. saidPeter Ceretti, an analyst who tracks food security at Eurasia Group’s risk advisory firm Eurasia Group.

He said, “We will see more demonstrations, probably wider and angrier. But I don’t expect regime-changing or destabilizing protests.” saidAs producers adjust and governments approve subsidy, this will result in increased productivity.

——

This report was co-authored by Jill Lawless in London, Sam Mednick in Ouagadougou (Burkina Faso), Cara Anna in Nairobi and Mark Carlson at Brussels, Belgium.