IMF: Inflation in the US will decrease in the second quarter of 2022

International Monetary Fund (IMF) Director General Kristalina Georgieva on January 12 said that inflation in the US will decrease in the second quarter of this year.

Consumers buy goods in a supermarket in Glendale, California (USA) January 12, 2022. Photo: AFP/VNA

In the CNBC interview, Georgieva said it has to do with solving supply chain problems and there are encouraging signs that some progress has been made.

The US Department of Labor on January 12 released a report showing that the consumer price index in the country in December 2021 increased by 7% over the same period last year, the strongest increase since June 1982.

U.S. government officials cited bullish indicators for homes, used cars and trucks as “the biggest drivers of seasonally adjusted all-commodity price increases. “. Higher food prices are also a significant contributor to inflation, although the 0.5% increase in the previous month was less than in recent months.

In China, Ms. Georgieva said that the policies to support the economy were withdrawn somewhat prematurely. Ms. Georgieva said that consumption in this country has not increased strongly enough to offset the effects of the COVID-19 pandemic on the economy. However, China has the financial resources to drive economic growth at 5%.

According to Ms. Georgieva, the People’s Bank of China (PBoC, the central bank) has taken a number of measures towards this goal and many results will be achieved.