The IMF Warns of Rising Global Inflation in the Event of Increased Oil Prices
The Managing Director of the International Monetary Fund, Kristalina Georgieva, issued a warning on Monday regarding the inflationary risks linked to the escalating conflict in the Middle East, highlighting that rising oil prices could have a direct impact on global inflation.
Direct Impact on Global Inflation
According to Georgieva, a 10% increase in oil prices, if sustained for most of the year, could lead to an increase of approximately 40 basis points in global inflation.
Speaking at a seminar organized by the Japanese Ministry of Finance, she noted that “the global economy is once again being tested in terms of resilience due to the new conflict in the Middle East.”
An Uncertain Economic Context
The IMF leader also emphasized that the independence of central banks, budgetary policies, and the overall economic frameworks contribute to supporting growth.
“We now live in a world marked by uncertainty. This has become the new normal,” she added.
Record Oil Prices
Oil prices have soared above $115 per barrel for the first time since 2022, amid rising tensions in the Middle East that threaten oil production and transportation.
The global benchmark, Brent, surpassed $115 per barrel following the reopening of trading on the Chicago Mercantile Exchange, representing a more than 23% increase from Friday’s closing price of $92.69.
Meanwhile, West Texas Intermediate was also trading around $115 per barrel, up approximately 25% from its closing price on Friday ($90.90).
