The International Monetary Fund (IMF) has warned that the ongoing conflict in the Middle East poses risks to global inflation and has heightened concerns over energy security.
IMF Managing Director Kristalina Georgieva said that a sustained 10% increase in oil prices throughout most of the year could lead to a 40-basis-point rise in global inflation.
“We are seeing resilience tested again by the new conflict in the Middle East,” Georgieva said while speaking at a symposium hosted by Japan’s Ministry of Finance.
She also urged policymakers to prepare for potential economic shocks in the current global environment.
“My advice to policymakers in this new global environment is to think of the unthinkable and prepare for it,” she said.
Source: Reuters.
