There is a risk that the spread of the Omicron variant under China's zero-Covid policy will lead to globally prolonged supply-side constraints and protracted  1  inflationary pressures, in addition to pushing down the global economy.
Attention should also be paid to such factors as the aging population, intensified conflict between China and both the United States and Europe, and the decline in medium- to long-term growth potential mainly due to the imposition of stronger restrictions. The second factor is firms' price-setting behavior.