Daily Management Review

IMF raises global inflation forecast-2022 to 8.3%


According to the International Monetary Fund, global inflation will be 8.3 percent this year and 5.7 percent next year, respectively.

In both instances, the projection was up 0.9% percentage points from the April data. Rising energy and food costs, as well as the ongoing supply and demand imbalance, all had an impact on the forecast's revision.

The fund anticipates that prices will grow by 6.6 percent and 3.3 percent in developed economies, respectively, and by 9.5 percent and 7.3 percent in emerging markets. Inflation in the Eurozone will be 7.3 percent this year and 3.9 percent next year, respectively. For the U.S., the figure is expected at 7.7 percent and 3 percent.

According to experts, the potential end to Russian gas deliveries to Europe could have an impact on how quickly inflation rises. It might lead to energy rationing in Europe, which would have a negative impact on key industrial sectors and significantly restrain the eurozone's economic growth in 2022 and 2023.

According to the World Bank, the global price increase in April 2022 was 7.8 percent, the largest since 1982 and the biggest since 2008 for developed nations as a whole.

source: imf.org