US economy

IMF’s Georgieva sees US inflation declining in Q2 2022

Reuters
IMF’s Georgieva sees US inflation declining in Q2 2022

SHOPPING. Shoppers browse in a Home Depot building supplies store in Saint Louis, Missouri, April 4, 2020.

Lawrence Bryant/Reuters

International Monetary Fund Managing Director Kristalina Georgieva notes 'some progress is being made' in addressing supply chain constraints

WASHINGTON, USA – Inflation in the United States is expected to decline in the second quarter of this year, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Wednesday, January 12.

“This is subject to dealing with supply chain constraints, and what we are seeing are some promising signs that some progress is being made in that regard,” Georgieva said in an interview with CNBC.

The US consumer price index surged 7% in the 12 months through December, the biggest year-on-year increase since June 1982, the labor department reported on Wednesday.

On China, Georgieva said policies to support the economy had been pulled out “perhaps a bit prematurely.”

She said consumption in China has not picked up the way it should to compensate for the disruptions in the economy due to COVID-19.

On the positive side, Georgieva said, China has the “fiscal space” to boost its economy to get to 5% growth.

“The People’s Bank of China actually did take some steps in that direction and I would expect that with the picture being what it is, there will be more to come,” she said. – Rappler.com