IMF’s Georgieva: Global inflation may be near peak

The director of the International Monetary Fund (IMF), Kristalina Georgieva, said that the global increase in consumer prices may be close to the highest point, but inflation may still become permanent.

In an interview with Bloomberg Television, Georgieva, who is at the annual UN climate change summit in Egypt’s Sharm El-Sheikh region, said: “We see central banks taking the fight against inflation as their first priority and are rightfully united on this issue. If we fail, price stability, which is the foundation of growth, collapses,” she said.

HAS THE SUMMIT BEEN SEEN?

While US inflation is expected to be close to 8 percent in October, Georgieva said: “I won’t speak in front of the data, but it’s very likely that we will peak.” Inflation data, to be released on Thursday in the US, is expected to ease to 7.9 percent from a record high of 8.2 percent.

Georgieva also said that the authorities will continue to fight to curb consumer price increases at a more reasonable pace. “If we see more diversity in the supply chain, it will inevitably put upward pressure on prices on inflation,” Georgieva said.

MAIN INFLATION AGENDA

Inflation data for the US, Germany and China are expected to be released this week. Uncertainties regarding monetary policies, high inflation and recession concerns continue to be the main points on the agenda of the world economy.

As central banks aggressively raise interest rates to curb rising consumer prices, this slows economic activity and raises fears of a recession.

However, as Georgieva said, curbing price rises may prompt central banks to start taking the expected easing steps and activate markets.