The International Monetary Fund (IMF) has recently adjusted its global economic outlook, citing inflation as an ongoing risk, even though the world economy has shown resilience. Global growth is expected to reach 3.2% in 2024 and continue at that pace into 2025. However, inflation remains a challenge, especially in the U.S., where rising gasoline and rent prices contributed to a 3.5% inflation rate in March 2024. Core inflation, which excludes volatile factors like food and energy, is also stubbornly high, signaling that price growth is still an issue despite some improvement.
The IMF emphasized the importance of remaining vigilant, particularly as fiscal policies like government spending could worsen inflationary pressures. For the U.S., elevated government spending is seen as a factor that may fuel inflation and affect global financial stability. As of January, the U.S. national debt surpassed $34 trillion, further complicating the inflation fight.
This combination of inflation risks and concerns about fiscal policy suggests that managing inflation will require careful economic balancing, especially in the face of persistent global uncertainties like geopolitical tensions. (Fox Business)
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