[Epoch Times, July 28, 2021](Epoch Times reporter Lai Yiqing reported from Taipei, Taiwan) The International Monetary Fund (IMF) released the latest “World Economic Outlook” report on Tuesday (July 27), predicting global economic growth this year and next year The rates were 6% and 4.9%, respectively, and warned that the risk of inflation may not be a temporary phenomenon, and central banks may need to preemptively and take action to respond.
The National Broadcasting Corporation Business Channel (CNBC) reported that the US Consumer Price Index (CPI) increased by 5.4% annually in June, higher than market expectations and the fastest growth rate in the past 13 years; the UK Consumer Price Index rose to 2.5 in June %, the highest since August 2018, higher than the Bank of England (Central Bank) target of 2%.
The IMF’s latest “World Economic Outlook” report stated that in most cases, price pressures will be temporary. It is expected that inflation in most countries will return to pre-epidemic levels next year, but “the uncertainty remains Very high, temporary pressure may become more permanent, and the central bank may need to take preemptive measures.”
As prices rise, the possibility of global central banks starting to curb their ultra-loose monetary policy increases, for example, gradually reducing asset purchase plans and other favorable stimulus measures.
Fed Chairman Jerome Powell said in early July that the job market is still lagging behind the overall economic recovery and that inflation “may remain at a high level in the next few months before it eases.”
The IMF pointed out earlier this month that if the United States provides more fiscal support measures, it may further aggravate inflationary pressures and cause interest rates to rise earlier than expected.
IMF chief economist Gita Gopinath said on a blog on the 27th: “The prolonged supply interruption and the rapid increase in housing prices may be factors that lead to high inflation.” She also warned: “ Inflation in some emerging markets and developing economies will remain high-end and will continue until 2022. One of the reasons is the continued pressure on food prices and currency depreciation.”
Editor in charge: Lu Meiqi
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