Two scenarios could lead to persistent underlying price pressures. In the first scenario, firms are able to maintain high profit margins over some time. At first glance, this scenario looks rather unlikely. The war is visibly slowing economic growth worldwide. Consumer confidence is collapsing, and energy and material costs are rising further in response to Russia’s invasion of Ukraine.
5/8  BIS central bankers' speeches  The latest survey evidence suggests, however, that firms still seem in a position to shield their profit margins. In April, more firms than ever, across all economic sectors, said they intended to raise selling prices over the next few months (Slide 9, right-hand chart).