Current inflation reflected strong and
widespread inflationary pressures from both the domestic and external
economies, which were further amplified by additional price shocks related to
the war in Ukraine and sanctions against Russia, in commodity prices as in the
supply of goods. These and other influences are further pushing up inflation.
The world was taken by surprise by the
autumn energy crisis, as well as by the outbreak of war. These are, by their
nature, negative supply shocks that added fuel to the inflationary fire that
was lit during the covid and post-covid economic rally. The confluence of these
unprecedented influences is challenging for the economy.
Source: CIA News and cnb.cz