Most recently inflation has been driven by Russia’s invasion of Ukraine, which has significantly impacted food and energy prices. However, beyond the headline measures of inflation, the effect of rising food and energy prices typically has a greater impact on lower-income countries, households and individuals.
The latest measures have drifted from the least economically distortive approach. If this drift continues it risks conflicting with other longer-term goals of price and fiscal stability and emissions reductions.
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