Uncertainty is the new normal, say Alpha Bank analysts


The main structural element of the new normal is expected to be a high degree of uncertainty, Alpha Bank argues in its weekly financial bulletin.

The main uncertainties are global, and are connected partly to the Omicron variant of the coronavirus and partly to the inflationary pressures – especially the rise of energy rates.

The bank’s analysts note that the increase in prices puts a considerable burden on household budgets, suppressing purchasing power.

However, they add that the accumulation of savings in previous months and the tax breaks should offset the inflationary impact and maintain consumption levels.