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IMF Warns Cost-of-Living Shocks Cause 'Lasting Deterioration' in Affordability
- On Tuesday, the International Monetary Fund warned that food and energy price spikes are increasingly persistent, driving inflation expectations higher while worsening global poverty and macroeconomic stability.
- Recurring price surges over the past five years were fueled by Russia's invasion of Ukraine and the Iran war, which pushed global inflation to 4.7% in 2026.
- IMF economist Chiara Maggi noted that cost-of-living crises "impact price stability, they reduce living standards and they worsen inequality," as a new model suggests 23 million more people fell below the extreme poverty line.
- The Fund urged countries to avoid broad-based subsidies, noting that producer subsidies can cost 22 times more to implement than "targeted and temporary transfers" for vulnerable populations.
- Georgetown University professor Shantayanan Devarajan warned that low-income countries face critical risks as growth slows, urging leaders to implement reforms before the full World Economic Outlook update releases next week.
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27 Articles
27 Articles
The rise in the cost of living, driven by wars in the Middle East and Ukraine, is lasting longer than initially expected, the International Monetary Fund (IMF) said, warning that people are not only facing higher food and energy prices but also a persistent deterioration in the affordability of essential goods compared to other products.
·Ljubljana, Slovenia
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Surging food, energy costs erode real wages, disproportionately hurting poorer households, fund says
·Ankara, Türkiye
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The various crises keep the prices of basic necessities at a high level, weighing heavily on the budgets of the least affluent households Inflation, wars, pandemic: crises
·France
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Total News Sources27
Leaning Left3Leaning Right4Center10Last UpdatedBias Distribution59% Center
Bias Distribution
- 59% of the sources are Center
59% Center
L 18%
C 59%
R 23%
Factuality
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