IMF chief warns of slowing growth, rising prices

The head of the International Monetary Fund has warned of slowing global economic growth and surging prices in many countries as the coronavirus pandemic limits recovery.

IMF Managing Director Kristalina Georgieva made the comments in a speech delivered online on Tuesday.
She said the IMF now expects global growth for this year to be a little slower than its previous projection of 6 percent announced in July.

Georgieva said the economies of the United States and China are still driving growth, but they are starting to lose momentum.

She added that inflation rates in a number of countries have increased rapidly.

She said " One particular concern with inflation is the rise in global food prices -- up by more than 30 percent over the past year. Together with rises in energy prices, this is putting further pressure on poorer families."

Prices are widely expected to gradually stabilize when supply disruptions triggered by the pandemic are brought under control.

However, some analysts see what is happening as a sign of so-called stagflation: a condition marked by rising prices despite an economic slowdown.