The International Monetary Fund (IMF) warns that there are signs that world inflation may remain high “for another couple of years” and recognizes that the impact will be greater in low-income countries (such as those in Africa) and those with higher incomes. medium (such as Latin Americans).
IMF experts explain that the uncertainty of the recovery, the duration of the pandemic and Russia’s war against Ukraine are the factors that will continue to encourage the rise in energy and food prices.
And since low-income economies and low-income families allocate a greater proportion of their spending to the consumption of these pressured goods, a greater impact on them is to be expected.
Inside an analysis titled “Will Inflation Stay High?” They observed that using interest rates as the only tool to combat persistent inflation “may be obsolete”, especially if there is evidence that this price escalation originated in an expansionary fiscal policy.
“The added stimulus and post-pandemic recovery with relatively greater support in advanced economies, combined with loose monetary policies, could lead to persistently high inflation.”
As the IMF and recently the World Bank have shown, Mexico is one of the countries that granted the most moderate fiscal support (1.7% of GDP), which rules out that the origin of inflation lies in the added stimulus.
“The response (to persistent inflation) may depend on the distribution of shocks in the economy and the joint reaction of the monetary and fiscal authorities,” they stressed.
Just last week, the general manager of the Bank for International Settlements (BIS), Agustín Carstens, warned that central banks have done more than their share in the last decade.
He suggested boosting growth so that indebted countries can bear much higher real and nominal interest rates. This, after acknowledging that the world is “on the cusp of inflation.”
Low-income economies and families spend a greater proportion of their spending on food and energy consumption.
ymorales@eleconomista.mx
hartford car insurance shop car insurance best car insurance quotes best online car insurance get auto insurance quotes auto insurance quotes most affordable car insurance car insurance providers car insurance best deals best insurance quotes get car insurance online best comprehensive car insurance best cheap auto insurance auto policy switching car insurance car insurance quotes auto insurance best affordable car insurance online auto insurance quotes az auto insurance commercial auto insurance instant car insurance buy car insurance online best auto insurance companies best car insurance policy best auto insurance vehicle insurance quotes aaa insurance quote auto and home insurance quotes car insurance search best and cheapest car insurance best price car insurance best vehicle insurance aaa car insurance quote find cheap car insurance new car insurance quote auto insurance companies get car insurance quotes best cheap car insurance car insurance policy online new car insurance policy get car insurance car insurance company best cheap insurance car insurance online quote car insurance finder comprehensive insurance quote car insurance quotes near me get insurance