Inflation warning from IMF

Gerry Rice, Spokesperson of the International Monetary Fund (IMF), stated at the press conference that inflationary pressures are spreading in many countries and supply-demand imbalances are lasting longer than planned. Emphasizing that inflation expectations are generally fixed in most economies, Rice said, "However, if supply cuts continue or expectations deteriorate, inflation may become more permanent." Noting that inflation in the US is expected to decline in 2022, Rice noted that policymakers should be alert to upside risks. IMF Spokesperson Rice stated that the high inflation in the USA may require a front-loaded policy response that will constitute a systemic negative for both the USA and the global economy. Noting that natural gas prices have risen to record levels in some parts of the world, Rice said that energy prices are expected to return to normal levels next year, with the decrease in heating demand and the adjustment of supply.