The IMF says inflation should return to normal by the end of next year but warned of slowing growth and increasing economic inequality.
Global inflation, which has suppressed risk assets like cryptocurrencies and tech stocks is set to fall to 3.5% by the end of 2025, thanks in large part to a resilient global economy, said the International Monetary Fund in its latest global outlook.
“The battle against inflation is almost won. After peaking at 9.4% year on year in the third quarter of 2022, we now project headline inflation will fall to 3.5% by the end of next year,” said IMF Chief Economist Pierre-Olivier Gourinchas in an Oct. 22 statement accompanying the IMF’s World Economic Outlook report.
IMF Chief Economist Pierre-Olivier Gourinchas delivering the World Economic Outlook forecast in Washington. Source: IMF
