(Washington) The pressure on prices could last until the end of next year, warned Wednesday the managing director of the International Monetary Fund.
The IMF had indicated in mid-October to expect inflation to subside from mid-2022, but the institution now seems to anticipate a more lasting phenomenon.
“We must be very vigilant on the evolution of inflation,” said Kristalina Georgieva, on the CNBC channel, pointing to the increase in demand and logistical problems due to the shortage in particular of truck drivers.
“This inevitably causes pressure on prices and this pressure is expected to continue until the middle of next year, perhaps even until the end of 2022,” she added.
The Fund has so far considered that high inflation was a transitory phenomenon, linked to the global recovery from the historic recession recorded in 2020.
This analysis is shared by a large number of economists, but growing concerns are emerging due to the surge in energy prices.
On October 17, Kristalina Georgieva indicated that among economic experts, there was still a consensus on the fact that “in advanced economies, inflation is temporary”, during a virtual seminar bringing together governors of Central banks.
Policymakers “have the tools” necessary to remedy inflation which would run away, she added. “We are very familiar with these tools and how they can be implemented.”
The IMF then estimated that there would be a peak in the last months of the year 2021 in both advanced and emerging countries, before stabilizing by the middle of next year.
M’s commentsme Georgieva intervene as the European Central Bank holds a monetary meeting on Thursday.
The meetings of the central banks of the United States (Fed) and the United Kingdom (Bank of England, BoE) will take place next week.