WASHINGTON (Reuters) – Inflation could “become more sticky” in some parts of the world if supply chain disruptions continue or inflation expectations become de-anchored, the International Monetary Fund said on Thursday.
In the United States, the world’s largest economy, inflation is expected to move down in 2022, but policymakers should remain vigilant given upside risks, IMF spokesman Gerry Rice told a regular briefing.
“Continued high levels of U.S. inflation may necessitate a more front-loaded policy response, which would pose a systemic downside for both the U.S. and the global economy,” he said.
(Reporting by Andrea Shalal, David Lawder and Rodrigo Campos; Editing by Chizu Nomiyama)
