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Saturday, December 4, 2021

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

International Monetary FundInternational Monetary Fund

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.

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