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IMF: there will be no new inflationary spiral in Europe

European countries will not face a new inflationary spiral due to the expected drop in energy prices next year. Alfred Kammer, Director of the European Department of the International Monetary Fund (IMF), announced this on Wednesday at a press conference via video link.

“At this stage, we do not expect the development of an inflationary spiral in Europe. The high inflation that we are seeing now is indeed driven by the main factor – rising energy prices, and we expect it to weaken during 2022, ”Kammer said.

He stressed that oil prices are „clearly returning to pre-pandemic levels due to strong demand.” “We have a specific problem with natural gas prices, which have increased five times over the past year, which is quite significant,” said the director of the IMF department, linking this situation, in particular, with the current climatic conditions in Europe.

Message IMF: there will be no new inflationary spiral in Europe first appeared on grand hector.

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