Price growth in eastern Europe has caused central banks across the region to scramble to fight inflation. On the one hand, populist governments want to continue their economic recovery. On the other hand, they cannot allow inflation to run rampant. Capital Economics analyst Liam Peach said, “Central and Eastern Europe is one of the regions of the world where we think that the risk of sustained higher inflation in the next few years is greatest.” Hungarian Prime Minister Viktor Orban is offering handouts—in spite of the central bank calling for restraint—because he’s caught in the middle of a tight election race. The Czech Republic is in flux after its Prime Minister lost his election, and Poland’s central bank increased interest rates unexpectedly this month.