The IMF Director Kristalina Georgieva warned about the risks of soaring inflation due to the war in the Middle East in her statement on Monday (9/3).
As she emphasized, a potential 10% increase in oil prices, if sustained for most of the year, would lead to a 40 basis point increase in global inflation.
“We see resilience being tested again by the new conflict in the Middle East,” Georgieva said, speaking at a symposium organized by Japan’s Ministry of Finance.
“My advice to policymakers in this new global environment is to think the unthinkable and prepare for it,” she stated as reported by CNN.
