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.

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

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

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

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