IMF Chief Warns of Potential Global Inflation Surge Amid Middle East Conflict, Urges Consideration of 'Unimaginable' Scenarios
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IMF Warns Global Inflation to Soar Amid Middle East Conflict, Oil Prices Surge
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News18•09-03-2026, 17:17
IMF Warns Global Inflation to Soar Amid Middle East Conflict, Oil Prices Surge
•IMF Managing Director Kristalina Georgieva warns that a protracted Middle East conflict could significantly increase global inflation, especially if oil prices remain high.
•If oil prices stay 10% higher for a year, global inflation could rise by 40 basis points; Brent crude already up 9% to $80/barrel, LNG up 50%.
•India's Ministry of Finance also warns of widespread economic impact, pressure on exchange rates, and inflation, though India's fundamentals remain strong.
•Pakistan has already raised petrol and diesel prices by approximately 20% (55 PKR/liter) due to rising international oil prices, causing public concern.
•Experts fear a second wave of inflation globally as increased transportation and supply chain costs lead to higher prices for essential goods.
