With inflation climbing to multi-decade highs and price pressures broadening out, the International Monetary Fund (IMF) has warned that there’s now a “substantial risk” that high inflation becomes a more permanent fixture and that expectations around future rates of inflation could become unmoored and drive a wage-price spiral.
A team of IMF economists said in a recent blog post that central banks in the world’s major economies have, for the most part, been caught by surprise by the intensity and persistence of the current inflationary wave.
