The Russian invasion of Ukraine has triggered an even sharper rise in the global prices of food, energy resources, and other raw materials, with inflation in Latvia exceeding 10% for the first time since 2008. According to information published by the Central Statistical Bureau, consumer prices in Latvia rose by 11.5% in March compared to March 2021, while compared to February of this year, consumer prices in Latvia have grown by 3.3%. This is the fastest monthly price increase in Latvia since 1996, surpassing even the levels experienced in 2008. A similar situation was seen in other European countries in March, and inflation in the eurozone as a whole has reached 7.5%. Inflation and the shortage of resources, such as metals, are currently undoubtedly the biggest economic challenges both in Latvia and in Europe. Unfortunately, this wave of inflation is unlikely to end without a recession. (...)