Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It can occur for a variety of reasons, such as an increase in demand or a decrease in supply, and it is typically measured using the consumer price index (CPI) or the producer price index (PPI). Inflation can have significant impacts on an economy, including decreasing purchasing power, reducing the value of savings, and distorting resource allocation. Central banks typically try to maintain low and stable inflation through various monetary policies, such as adjusting interest rates or engaging in open market operations.

The invasion of Ukraine by Russia has increased uncertainty in the market, with potential consequences for millions of people. While the assumption is that the response will be tougher sanctions, the major unknown is how the Ukrainians and the Western powers will react. The crisis has broader implications beyond emerging markets, particularly for Europe's reliance on Russian energy.