IMF chief warns of Middle East conflict’s impact on global inflation

IMF Managing Director Kristalina Georgieva says every 10% rise in oil prices, if sustained for most of the year, could add 40 basis points to global inflation

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), warned, on March 8, of inflationary risks stemming from the conflict in the Middle East.

Speaking at a seminar hosted by the Japanese Ministry of Finance, she said that every 10% rise in oil prices, if sustained for most of the year, could add 40 basis points to global inflation.

“We are seeing resilience tested again by the new conflict in the Middle East,” Georgieva added.

“My advice to policymakers in this new global environment is think of the unthinkable and prepare for it,” she stated.