Are we beyond the inflation peak?

Inflation developments in CEE and the Eurozone have stood in stark contrast since the start of the pandemic. While deflationary effects caused by the pandemic and low energy prices resulted in inflation dropping to negative territory in the Eurozone, headline inflation remained locked between 3% and 4% in several CEE countries. Currency depreciation as well as tight labor market conditions ahead of the crisis are behind such a development, especially among CEE countries with free floating currencies (Czechia, Hungary and Poland). Should central banks be concerned with the elevated inflation?