Global inflation will decrease from 8.8% to 6.6% in 2023 and to 4.3% in 2024 due to tightening of monetary policy, according to the IMF’s World Economic Outlook update, according to TASS.

“Global inflation is expected to fall from 8.8% in 2022 to 6.6% in 2023 and 4.3% in 2024, still above pre-pandemic (2017-19) levels of about 3.5%,” the document said. “Signs are apparent that monetary policy tightening is starting to cool demand and inflation, but the full impact is unlikely to be realized before 2024,” the fund experts suggest, “Global headline inflation appears to have peaked in the third quarter of 2022.”

“Prices of fuel and nonfuel commodities have declined, lowering headline inflation, notably in the United States, the euro area, and Latin America. But underlying (core) inflation has not yet peaked in most economies and remains well above pre-pandemic levels,” the report said.

The IMF noted that “tighter monetary conditions and lower growth potentially affect financial and debt stability”. In this regard, the fund recommended to “strengthen debt restructuring frameworks”.