IMF head warns finance leaders must prepare for multiple inflationary shocks

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Kristalina Georgieva cites mounting pressures on energy and food prices due to Russia’s war in Ukraine and China’s zero-Covid policies

International Monetary Fund MD Kristalina Georgieva. Picture: REUTERS/JASON LEE

“I think what we need to start getting more comfortable with is, that may not be the last shock,” she said, noting that she stopped viewing inflation as a “transitory” one-time shock when the Omicron Covid-19 outbreak took hold late in 2021. She said she was “actually not too worried” about China’s economy because the Beijing government has fiscal and monetary policy space to support growth.

 

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