Financing costs for the EMEs have increased over the past few weeks and could thus deteriorate in the coming months. If the financial crisis were to linger longer and the economic activity in these regions slows down significantly, the adverse impact on the real economies in the major EMEs could turn out to be stronger than that has been observed so far.
Developments in core inflation deserve very careful monitoring. We should watch out for possible second-round effects. 3  See Corsello and Tagliabracci (2022).