WASHINGTON—Inflation could “become more sticky” in some parts of the world if supply chain disruptions continue or inflation expectations become de-anchored, the International Monetary Fund said on Thursday. In the United States, the world’s largest economy, inflation is expected to move down in 2022, but policymakers should remain vigilant given upside risks, IMF spokesman Gerry Rice told a regular briefing. “Continued high levels of U.S. inflation may necessitate a more front-loaded policy response, which would pose a systemic downside for both the United States and the global economy,” he said. Rice said inflation expectations were generally anchored in most economies, adding, “But if the supply disruptions continue or inflation expectations become de-anchored, inflation may become more sticky.” He said central banks need to “stay vigilant” on inflationary pressures and the IMF is working through scenarios on monetary and fiscal policy, including the spillover effects on emerging economies from monetary tightening …
IMF Warns Inflation Could ‘Become More Sticky’ in Some Parts of World
November 19, 2021
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