IMF chief: Worldwide inflation continues to cool

Global inflation continues to decelerate as tight monetary policies have taken effect without undermining the world economy, according to Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF).

Report informs via Interfax that Georgieva cautioned that it's too early to celebrate, as although inflation is slowing down, prices are consolidating at new, higher levels.

"The world is now moving towards a trajectory of low growth rates and high debt levels. We forecast that over the next five years, global GDP will grow at a sluggish pace, averaging 3.2% per year," she said.

The IMF predicts that global inflation will slow from 5.7% in the fourth quarter of last year to 5.3% in the current quarter and further to 3.5% in the fourth quarter of next year. Notably, the pace of consumer price growth will decelerate faster in developed economies.

Georgieva emphasized that priority spending areas include climate and demographic-related expenditures, while in emerging market and low-income countries, investments aimed at bridging the economic development gap are crucial.