Markets fluctuated as investors adjusted their views of central banks’ response to persistent inflation amid a deteriorating growth outlook; the US dollar reached record highs. An easing of financial conditions reversed in August as the policy focus on inflation sharpened and fears of an energy crisis increased, notably in Europe. A special feature argues that effective restrictions on Russian energy output would come with spillover effects for industrial production and the crops used in biofuels.

This information was gathered from the Bank for International Settlements