Global inflation could be peaking, the head of the International Monetary Fund has said, but she warned that consumers were at risk of facing persistent pressure from rising living costs due to a breakdown in world supply chains.
Kristalina Georgieva, the IMF’s managing director, said there were signs the global surge in consumer prices since the Covid pandemic and exacerbated by Russia’s war in Ukraine was close to its apex.
“It is very possible that we are peaking,” she said in an interview with Bloomberg TV from the Cop27 climate summit in Egypt. “We now see central banks very united on fighting inflation as a top priority and rightly so. If we don’t succeed, it would de-anchor and then the foundation for growth which is price stability is dented.”
However, the head of the Washington-based fund warned that a fragmentation in global manufacturing supply chains could make it harder to push measured inflation rates back…
