According to a recent study by the Leibniz Institute for Economic Research at the University of Munich (Ifo), global inflation will decline slightly in the coming years, but will remain high in a long-term comparison. For this year, economists from more than 100 countries expect an average of 7.7 percent. In Austria inflation was 8.7 percent in June.
6.2 percent is forecast for 2023 and 4.5 percent for 2026. In comparison, for the period from 2010 to 2019, the World Bank reported an average value of 2.7 percent. “Inflation has come around the world to stay,” said Niklas Potrafkevom of the Ifo Institute in Munich, which, along with the Institute of Swiss Economic Policy, asked economists about their inflation expectations. The results published Thursday are based on 663 responses.
Monetary Fund advises ‘act now’
The Washington-based International Monetary Fund (IMF) recommends countries experiencing high inflation do everything they can to bring it back under control. 75 central banks around the world have already raised their interest rates by an average of three percentage points since July 2021. “Acting now will hurt less than doing it later.”
The European Central Bank (ECB) has been repeatedly accused, especially in Germany, of having underestimated inflation for a long time and of acting hesitantly. Clear communication to the financial markets is crucial in reversing interest rates, according to the IMF. Emerging markets in particular are under pressure as capital was withdrawn here for the fourth consecutive month in June due to rising interest rates, for example in the US. That hasn’t happened in seven years.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
