The International Monetary Fund says the impact of the war in Ukraine is likely to sustain pressure on commodity prices.
The Washington-based lender disclosed this in its ‘World Economic Outlook: War Sets Back the Global Recovery April 2022,’ report.
According to it, inflation is expected to remain high, and far longer than it had previously forecasted.
It said, “With the impact of the war in Ukraine and broadening of price pressures, inflation is expected to remain elevated for longer than in the previous forecast.
“The conflict is likely to have a protracted impact on commodity prices. This will affect oil and gas prices more severely in 2022 and food prices well into 2023. For 2022, inflation is projected at 5.7% in advanced economies and 8.7% in emerging market and developing economies.
“Inflation in 2023 is projected at 2.5% for the advanced economy group and 6.5% for emerging market and developing economies. However, as with the growth outlook, considerable uncertainty surrounds these inflation projections.”
The IMF added that energy and food prices contributed significantly to the headline inflation in 2021. According to it, the sharp hike in oil and gas prices led to an increase in energy costs.
