Inflationary pressures were spurred further by the renewed lockdowns in China as well as the Russia-Ukraine war, which not only heightened uncertainty, but also exacerbated supply bottlenecks and disrupted food and energy markets. Oil prices rose sharply in response to the invasion, touching above $ per barrel in early March before subsiding somewhat.
As a result, inflation has risen to levels last seen in the 1980s in some of the advanced economies. The combination of these adverse shocks is expected to markedly slow global growth. Prospects are worsened by the expected high global interest rates as central banks respond to keep inflation expectations anchored.