WASHINGTON—The International Monetary Fund expects U.S. core inflation to peak in the first quarter, easing to 3.4 percent by the end of 2022 and dropping to the Federal Reserve’s average target of 2 percent in 2023, the IMF’s No 2. official told Reuters. First Deputy Managing Director Gita Gopinath said the Euro area would likely see inflation rising for a couple of quarters, but getting close to the European Central Bank’s target of around 2 percent by the end of the year.