Rising prices: what is expected inflation next year?

At the end of this year, average global inflation will reach 8.8%, peaking according to the International Monetary Fund (IMF), but what is expected in 2023?

Although the IMF claims that the rate Prices remain high longer than expected, forecasts indicate that global inflation will fall to 6.5%.

“Inflation surprises were more common in advanced economies and more diverse in emerging market and developing economies,” the IMF said in a report.

For Latin America and the Caribbean only, it is noted that in 2023 Prices will remain high with an average inflation of 11.4%.

In addition, it is predicted that in five years, by 2027, the price indicator will be at the level of 5.7%.

IMF calls for action against rising prices

Given the high outlook, the IMF urged central banks to continue to act by raising interest rates to keep prices down.

However, the increase in rates increased the risks for global economy which could lead to a recession.

“Central banks around the world are now carefully focusing on restoring price stability. And the pace of tightening has accelerated significantly… There are risks of both under-tightening and over-tightening,” said Pierre-Olivier Gurinsha, chief economist at the IMF. .

On the other hand, the agency has been opposed to imposing restrictions on food or energy prices, as proposed in some countries, as they argue that in the long run this measure will benefit those who consume the most than those who consume the most. Total. need this.