info@marketresearchfuture.com   📞 +1 (855) 661-4441(US)   📞 +44 1720 412 167(UK)   📞 +91 2269738890(APAC)

Inflation Affecting Retail Industry In 2022-2023

By Snehal Singh , 14 June, 2023

The global economy is facing new challenges in 2023 due to various reasons. Without any deviation, this leads to a slowing economy that further checks the market growth. A blooming labor economy enhances sales in the market. 

According to International Monetary Fund (IMF), Some selected economies, which account for 83 percent of world output, and advanced economies like the United States and the United Kingdom, showed growth projections annually for the Gross Domestic Product (GDP) of about 0.5 and 1 percent for 2023. These two countries accounted for 3.2 and 2.3 percent of projections for 2022. For the blooming market and advancing economies like India and China, IMF accounted the annual growth projections in the GDP to be 6.1 and 4.6 percent, respectively, in 2023, and these countries accounted for 7.4 and 3.3 percent, respectively, in 2022. 

The retail sales sector is facing many challenges as high inflation rates have already engulfed the global economy; a rise in interest rates, and the price of commodities increasing daily, among other factors, is leading to a slow-paced economy for 2023. The consumer prices globally for the developed economies is 3.3 percent in 2023, up from 6.3 percent in 2022, whereas for advancing economies of the world, it went from 9.5 percent in 2022 to 7.3 percent in 2023. Both cases differ, as in the former one, the economy of the advanced nations is seen to have risen as the consumers agree to pay more. Still, an inflation rate hike in developing economies lessens the demand for commodities and services. The inflation rate for euro areas is 7.3 percent in 2022, which will be 3.9 percent in 2023; for the United States, the inflation rate was 7.7 percent in 2022 and is expected to reach 3 percent in 2023, as per the reports produced by IMF. Hence, the change in the inflation rate will impact the consumers’ demand for commodities at retail prices. Thus, a business will lose revenue due to high inflation rates that decrease the goods buying power. 

Growth Projections

Growth-Projection-July-2023.jpg

Latest News

2022.png
UK Seeks Renewable Energy Boost: Energy Secretary Ed Miliband to Visit China in 2025

Energy Secretary Ed Miliband will visit China from March 17 to 19, 2025, to boost the United Kingdom’s (UK) renewable energy initiatives. This visit aims to revive the UK-China Energy Dialogue, excluding nuclear power, via clean and sustainable…

Read More

2024.png
Semiconductors Powering the Future: Fostering Renewable Resources Growth Amid Complexity in Supply Chains

In 2025, the global semiconductor industry is set to boom as sales are projected to increase by 15 percent, reaching nearly USD 721 billion. This growth is prominent in both the technological region and the aiding toward the clean energy shift.

With…

Read More

2025.png
Advanced Packaging Reshapes Chip Industry in 2025

The world of semiconductors is evolving with new advanced multichip packaging innovations in 2025. Due to the advancements, the chip's performance improves, mobile devices and new GenAI technology can be produced promptly, and production and…

Read More

2025.png
AI Reinvents Energy Efficiency in Building Designs 2025: A Novel Approach to Clean Energy Transition

In 2025, AI technology will change energy efficiency in buildings, marking another milestone in the shift towards renewable energy. With AI, Building Management Systems (BMS) can now guarantee energy monitoring and optimization, which minimizes waste…

Read More

2050.png
Big Tech Backs Nuclear Expansion: Pledges to Triple Global Capacity by 2050

Leading technology giants Amazon, Google, and Meta have teamed up with other big energy users in a historic action at the CERAWeek 2025 energy conference in Houston to promote an ambitious initiative: doubling world nuclear power capacity by 2025…

Read More

Author Pic
Snehal Singh

Assistant Manager - Research