Oliver Mangan: ECB investigates worst-case outcomes for prices if Ukraine war escalates

Ukrainian servicemen ride on tanks towards the front line with Russian forces in the Lugansk region of Ukraine. Picture: Getty 

Markets, economists and central bankers continue to struggle in assessing the implications for global economic activity of the war in Ukraine and sanctions imposed on Russia.

It is clear inflation will be much higher this year, with consumer price index rates near 8% likely to be seen in many economies, thereby depressing real disposable income and growth.