Inflation in India expected to come down to 5 pc in 2023 and 4 pc in 2024: IMF

Inflation in India is expected to come down from 68 percent in the current fiscal year ending March 31 to 5 percent the next fiscal and then drop further to 4 percent in 2024 the International Monetary Fund IMF said on TuesdayInflation in India as in other countries is expected to come down from 68 percent in 2022 to 5 percent in 2023 and then 4 percent coming towards the target in 2024 Daniel Leigh Division Chief Research Department of the IMF told reporters hereThat partly reflects the central banks actions he addedAccording to the World Economic Outlook update released by the IMF on Tuesday about 84 percent of countries are expected to have lower headline consumer price index inflation in 2023 than in 2022Global inflation is set to fall from 88 percent in 2022 annual average to 66 percent in 2023 and 43 percent in 2024 above prepandemic 201719 levels of about 35 percent it saidThe projected disinflation partly reflects declining international fuel and nonfuel commodity prices due to weaker global demand It also reflects the cooling effects of monetary policy tightening on underlying core inflation which globally is expected to decline from 69 percent in the fourth quarter of 2022 year over year to 45 percent by the fourth quarter of 2023 the IMF saidStill disinflation will take time by 2024 projected annual average headline and core inflation will respectively still be above prepandemic levels in 82 percent and 86 percent of economies it saidIn advanced economies annual average inflation is projected to decline from 73 percent in 2022 to 46 percent in 2023 and 26 percent in 2024 above target in several cases In emerging markets and developing economies projected annual inflation declines from 99 percent in 2022 to 81 percent in 2023 and 55 percent in 2024 above the 49 percent prepandemic 201719 average the IMF saidAlso Read Pak rupeersquos fall slows as PM Sharif hopes for IMF fundsIn lowincome developing countries inflation is projected to moderate from 142 percent in 2022 to 86 percent in 2024 still high but close to the prepandemic average it further saidIn a blog post PierreOlivier Gourinchas Chief Economist and Director Research Department of the IMF wrote that global inflation is expected to decline this year but even by 2024 projected average annual headline and core inflation will still be above prepandemic levels in more than 80 percent of countriesThe inflation news is encouraging but the battle is far from won Monetary policy has started to bite with a slowdown in new home construction in many countries Yet inflationadjusted interest rates remain low or even negative in the euro area and other economies and there is significant uncertainty about both the speed and effectiveness of monetary tightening in many countries Gourinchas saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever