they cannot be modelled with probability distributions and thus could not have been predicted by central banks, economic and financial organisations, academics or governments. As long as the war in Ukraine continues and keeps shaking the world, along with other geopolitical tensions, uncertainty about economic developments remains heightened.
High inflation affects all citizens, but especially the most vulnerable, and can trigger a vicious circle of price increases. As a result, consumption and investment planning becomes difficult for households and businesses alike. Also, trust in the currency weakens, as money gradually loses its value.