Project number: PD146385

In this research, I examine the effectiveness of central banks in the V4 countries (Hungary, Czech Republic, Poland and Slovakia) in dealing with food price rises and oil price increases. In the V4 countries, households spend a larger share of their income on food than in the more developed countries, so a permanent increase in food prices puts a significant pressure on household budgets, which also affects living standards. Nowadays, renewable energy sources are becoming increasingly popular, but the residential and corporate sectors continue to rely almost entirely on fossil fuels. As a result, changes in oil prices almost without exception affect all aspects of our lives, directly or indirectly. In my analysis, I am also looking at the impact of oil price changes on inflation in different countries. The results of this research will provide useful information for monetary and fiscal policy makers.