Editorial: The years of free money are now coming to an end

Interest rates are set to rise in 2022, with big implications for homeowners, people and businesses with high borrowings, and the trade and investment that keep the global economy moving

Annual inflation in the eurozone was 5 per cent in December, compared to the European Central Bank’s target rate of 2 per cent. Picture: Getty

The decade-long era of zero inflation and rock-bottom interest rates is coming to an end. As the global economy struggles to shake off the dislocations of the Covid-19 pandemic, prices are rising almost everywhere. Most people will have noticed the trend by looking at energy bills. But prices of food, semiconductors, household goods and other essential items are also rising.

There are many factors behind this burst of price inflation, including disrupted supply chains, soaring ...