IMF: these expected price increases in 2022

The International Monetary Fund revealed in a recent report that the data indicate in what measure of the rise in energy costs has caused a rise in inflation rates, above all in Europe. The price of fossil fuels has almost doubled in the past year. High food prices also contributed to rising inflation.

Meanwhile, ongoing supply chain disruptions, port blockades, logistical stresses and strong demand for goods have increased pricing pressures, in particularly in the United States. The rise in the prices of imported goods has also contributed to inflation in some regions, including Latin America and the Caribbean.

Inflation is likely to remain high. According to the January WEO update, the price increase questyear will be in media 3.9% in advanced economies and 5.9% in emerging markets and economies in via of development, before decreasing over the next year.

Assuming inflation expectations remain well anchored and the pandemic eventually loosens its grip, rising inflation should subside as supply chain problems fade, central banks raise interest rates, and demand returns more. services rather than material-intensive consumption prime.

The contracts future on oil indicate that crude oil prices will rise by about 12% questyear, with natural gas prices rising by around 58%. These increases for both subjects prime during the year in prices will be much lower than their earnings over the past year and are likely to be followed by lower prices in 2023 as supply and demand imbalances shrink further.

Likewise, food prices are likely to rise at a more moderate pace by around 4.5%. quest’year and decrease next year, after rising 23.1 percent over the past year, according to data from the United Nations Food and Agriculture Organization. This would ease spending pressures on millions of people in around the world, especially in low-income countries.

The International Monetary Fund has emphasized that these burdens fall in much of it on the shoulders of the population of emerging and low-income countries, where food usually accounts for one-third to one-half of consumer spending. But this share is smaller in advanced economies, such as the United States, where food accounts for less than a seventh of households’ spending bills.

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