Inflation in both advanced and emerging markets to peak in last months of 2021 – IMF projects

The International Monetary Fund (IMF) has said despite recent increases in headline inflation in both advanced and emerging market economies, long-term inflation expectations remain anchored.

Looking ahead, the IMF said, headline inflation is projected to peak in the final months of 2021 but is expected to return to pre-pandemic levels by mid-2022 for most economies.

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 here: https://t.co/KnxQBj19aW pic.twitter.com/nIHrpUhJVc

— IMF (@IMFNews) October 8, 2021

But, it added, given the recovery’s uncharted nature, considerable uncertainty remains, and inflation could exceed forecasts for a variety of reasons.

A 1-percentage-point increase in foreign basic research increases annual patenting in emerging market and developing economies by 0.9 percentage point more than in advanced economies More here: https://t.co/KnxQBjiK2u pic.twitter.com/jH5UcppIFg

— IMF (@IMFNews) October 8, 2021

“Clear communication, combined with appropriate monetary and fiscal policies, can help prevent ‘inflation scares’ from unhinging inflation expectations,” the Bretton Woods Institution stated.

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By Laud Nartey|3news.com|Ghana