Global Central Bank PolicyMonetary Policy

Ukraine war adds supply shock to demand inflation

_Economics/__Global Finance

Summary

Russia's invasion of Ukraine in February 2022 sent energy and food prices surging, adding a supply-side shock to already elevated demand inflation. Global inflation reached its highest levels since the 1970s oil crisis. Central banks faced a more complex tightening challenge than they had anticipated.

The commodity price impact of the Ukraine invasion and its implications for the global inflation trajectory.

Analysis of whether 2022's inflation mix is more like the 1970s supply shock than the 2008 demand collapse.

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