We also noted that a key risk to our projection—an increase in global energy prices—hasn’t materialized so far. But China’s economy is rebounding, as expected, now that it has reopened. The strength of China’s recovery and the ongoing impact of Russia’s war on Ukraine remain key sources of upside risk for commodity prices, including energy.
And with inflation still well above our target, we’re still more worried about upside risks. We’ll have more to say about all of this in our April forecast. Conclusion I hope I’ve given you a sense of how global forces have influenced the growth of prices here at home and how they will continue to influence inflation going forward.