IMF’s Georgieva warns Middle East conflict could push global inflation higher

[TOKYO] IMF Managing Director Kristalina Georgieva on Monday warned of inflation risks from the Middle East conflict, saying a 10 per cent increase in oil prices, if persistent through most of the year, would result in a 40-basis-point increase in global inflation.

“We are seeing resilience tested again by the new conflict in the Middle East,” Georgieva said, speaking in a symposium hosted by Japan’s finance ministry.

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