The IMF announced that high inflation is likely to continue in the coming months, and that it is expected to return to pre-coronavirus levels by mid-2022.
The International Monetary Fund (IMF) has published the analytical section of its World Economic Outlook Report titled “Inflation Scares”. Pointing out that headline inflation has increased in developed and developing economies since the beginning of this year due to increased demand, lack of input and rapidly rising commodity prices, it was stated that long-term inflation expectations have remained relatively stable until now.
“Looking ahead, headline inflation is expected to peak in the last months of 2021, with inflation returning to pre-pandemic levels by mid-2022 and risks to the upside for both advanced economies and emerging market country groups,” the report said. assessment was included.
In the report, which pointed out that long-term inflation expectations are expected to remain stable in the basic forecast, it was noted that significant uncertainties persisted, especially regarding the assessment of the economic recession, given the uncertain nature of the recovery.
“Long-term supply disruptions, commodity and housing price shocks, longer-term spending commitments, and failure to stabilize inflation expectations could lead to substantially higher inflation than originally anticipated,” the report said. expression was used.
Open communication, combined with appropriate monetary and fiscal policies tailored to country-specific contexts, can prevent inflation fears from undermining inflation expectations, the IMF report said.
Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.
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