Central banks have recently focused on so-called core inflation metrics, which do not include volatile food and energy prices. Past food and energy price shocks have been relatively short-lived, but Bank of America economist Aditya Bhave recently said there's evidence the recent spike in food and energy prices may not be going away anytime soon.
No End In Sight: The surge in food and energy prices in March has been triggered by the Russian invasion of Ukraine, but prices were already rising due to supply chain disruptions prior to the recent military action and subsequent sanctions. Oil prices have been rising steadily for the past year as global demand recovers from the COVID-19 pandemic and OPEC maintains supply cuts.
