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4. The chart below shows that inflation has been rising in the United States, Euro area and Japan since the beginning of 2021. Discuss some

4. The chart below shows that inflation has been rising in the United States, Euro area and Japan since the beginning of 2021. Discuss some reasons behind this trend. Inflation - Advanced Economies* Year-ended % 5.0 5.0 US Euro area 2.5 MV 2.5 0.0 9 0.0 V Japan -2.5 -2.5 -5.0 -5.0 2006 2010 2014 2018 2022 Personal consumption expenditure (PCE) inflation for the US Japan data excludes the effects of the consumption tax increase in April 2014 Sources: RBA, Refinitiv

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