IMF Warns that Price Shocks Can Tighten Inflation for Years
4 Articles
4 Articles
The cost of living in the capital worries people who live in high prices of food and energy should become more frequent, according to the International Monetary Fund (IMF). The institution warns that these crises can keep inflation expectations high for longer, aggravate poverty and threaten economic stability. An IMF survey, released this week, analyzed the measures adopted by governments over three decades to mitigate the effects of these high…
The impact is potentially heavier for low-income households that allocate most of their income to making ends meet.
The IMF says that food and energy fires have become routine in the last five years and keep inflation expectations high for up to three years after each crisis. The fund recommends targeted income transfers: price controls and tax cuts cost three to six times more.
IMF study points out that food and energy price shocks tend to be more frequent and keep inflation high for years
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