ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Though beneficial to government balance sheets, the "inflation tax" could burden consumers with unmanageable price hikes.

Inflation tax hits $4.5tn in U.S., Europe amid global price hikes

Consumers may ultimately pay for less government debt through devalued currencies

KAZUYA MANABE and KENTARO TAKEDA, Nikkei staff writers | U.S.

TOKYO -- Higher inflation is reducing the outstanding debt of the U.S. and European countries through currency depreciation, totaling a $4.5 trillion decrease in 2021 and 2022, according to Nikkei's analysis of macroeconomic data.

Even though beneficial to government finances, this "inflation tax" is accompanied by risks to consumers unless runaway inflation is contained.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more