The International Monetary Fund has warned of inflation risks from the escalating Iran war, as it has a direct impact on rising crude oil prices.
IMF Managing Director Kristalina Georgieva said on Monday that a 10% rise in crude oil prices, if it continues throughout the year, could increase global inflation by 40 basis points.
“We are seeing resilience tested again by new conflict in the Middle East,” Georgieva said, speaking at a symposium organized by Japan’s Finance Ministry. “My advice to policymakers in this new global environment is to think about the unimaginable and prepare for it.”