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"Monetary policy can now count on a period of rising inflation to pass for now, but central banks must be prepared to act quickly on the risks of waiting for rising inflation if those become more real during the current economic recovery on an unknown trajectory. Central banks should plan for this eventuality, announce clear triggers for such action," Gopinath said at a press conference in Washington.
She added that according to the fund, US inflation should return to normal levels by mid-2022.
"For some (developed) countries, it will take a little longer, maybe until the end of (next) year," Gopinath said.
"We are also keeping an eye on what is happening regarding wage inflation, which has been raised in the US. But at the same time, as we all know, (inflation) is concentrated in some sectors, so we have to see if it becomes a much broader phenomenon," Gopinath added.
Also, she said, it remains to be seen how overall inflation will be affected by rising property prices.
The US is considered a major "driver" of inflation in the global economy due to the rapid economic recovery from the coronavirus pandemic and the multi-trillion-dollar investment in the economy that the US Congress has approved or is preparing to approve.
source: imf.org
She added that according to the fund, US inflation should return to normal levels by mid-2022.
"For some (developed) countries, it will take a little longer, maybe until the end of (next) year," Gopinath said.
"We are also keeping an eye on what is happening regarding wage inflation, which has been raised in the US. But at the same time, as we all know, (inflation) is concentrated in some sectors, so we have to see if it becomes a much broader phenomenon," Gopinath added.
Also, she said, it remains to be seen how overall inflation will be affected by rising property prices.
The US is considered a major "driver" of inflation in the global economy due to the rapid economic recovery from the coronavirus pandemic and the multi-trillion-dollar investment in the economy that the US Congress has approved or is preparing to approve.
source: imf.org
