Inflation has increased globally but by how much varies by country. Inflation is particularly high in economies where buoyant demand, tighter labour markets and greater wage increases are amplifying the food and energy price shock. Governments have stepped in with a range of measures to keep energy and food prices down or to compensate households and firms for the price increases.
The war in Ukraine is a major humanitarian crisis with associated economic shocks that threaten the post-pandemic recovery. The OECD Economic Outlook, Volume 2022 Issue 1, highlights the implications and risks for growth, inflation and living standards from higher commodity prices and potential disruptions to energy and food supplies, and discusses the associated policy challenges.