Georgieeva warns of inflation due to Middle East conflict

IMF head Kristalina Georgieva stated that the Middle East conflict poses a serious threat to the global economy. She predicted that a 10% increase in oil prices would lead to a 40 basis point rise in global inflation and that a prolonged crisis could negatively impact growth and business activity.

IMF Managing Director Kristalina Georgieva warned on Monday of inflation risks stemming from the Middle East conflict. She stated that any 10% increase in oil prices, if sustained for most of the year, would be met with a 40 basis point rise in global inflation. «We live in a world of uncertainty, and this is the new normal now,» Georgieva added. Earlier, at a seminar hosted by Japan's Ministry of Finance, she said: «We are facing a new test of the economy's resilience to the new conflict in the Middle East... and if this crisis drags on, it is clear that it could affect market sentiment, growth, and inflation».

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