This was stated by the International Monetary Fund in one of the analytical chapters of the World Economic Outlook to be published next week
Inflation will continue to rise in the coming months and then return to pre-pandemic levels by mid-2022. This was stated by the IMF in one of the analytical chapters of the World Economic Outlook to be published next week.
“Our forecasts are for annual inflation in advanced economies to peak at 3.6% on average in the final months of this year, before regressing to 2% in the first half of 2022, in line with central bank targets. . Emerging markets will see faster rises and inflation will hit 6.8% on average, then drop to 4%. The projections, however, are accompanied by considerable uncertainty and inflation could remain high for longer ”. This is what we read in chapter 2 of the World Economic Outlook, dedicated to inflation, and in the post on the International Monetary Fund blog that accompanies its publication.
“Factors that could contribute are rising real estate costs and prolonged supply shortages in advanced and developing economies, or food price pressures and currency depreciation in emerging markets. Food prices have risen around the world by about 40% during the pandemic, representing an acute threat to low-income countries, where these purchases represent a large part of consumer spending ”. According to the Fund’s economists, as the director Kristalina Georgieva said yesterday, governments must “walk the fine line between remaining patient in their support for recovery and being ready to act quickly” in the event of too high inflation.
“Food prices rose 40% during the pandemic in what is a” particularly acute challenge for low-income countries, “says the IMF in one of the analytical chapters of the World Economic Outlook to be released next week. ‘Inflation outlook’ varies significantly across economies. Fast inflation in the United States, for example, is expected to accelerate advanced economies, even as pressures in the euro area and Japan they are estimated to remain relatively weak, ”notes the IMF.
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