IMF predicts an increase in prices of fuel
Prices for vital products such as food and fuel are growing, according to the International Monetary Fund (IMF), although it is expected to ease next year.
“Prices for essential items from food to fuel are rising, but the IMF projects the price pressures to ease next year, amidst great uncertainty. Our latest #WEO research on inflation,” the IMF stated in a tweet.
Despite recent increases in headline inflation in both advanced and developing market countries, long-term inflation expectations remain stable, according to the Bretton Woods institution.
According to the organization, headline inflation is forecast to peak in the final months of 2021, although most economies will revert to pre-pandemic levels by mid-2022.
However, considering the uncharted nature of the recovery, there is tremendous uncertainty, and inflation could overshoot projections for a variety of reasons, per IMF projections.
“Clear communication, combined with appropriate monetary and fiscal policies, can help prevent ‘inflation scares’ from unhinging inflation expectations.”, IMF disclosed.
Source: Richard Mensah Adonu | Join our Telegram Group
