IMF Warns Cost-of-Living Crises Drive Inflation
The IMF warns that frequent spikes in food and energy prices drive inflation expectations higher and worsen poverty globally. Researchers urge governments to use targeted cash transfers instead of broad subsidies during crises.
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Cost-of-living crises drive inflation expectations higher for longer and push 23 million more people into extreme poverty, the IMF warned on Tuesday. The findings arrive as geopolitical conflicts in Ukraine and the Middle East keep global price volatility elevated. The research highlights long-term risks to economic stability that could force central banks to raise interest rates.
