IMF: India’s Inflation will fall to 5% in 2023, 4% in 2024

January 31, 2023

The International Monetary Forum recently released the World Economic Outlook. According to the report, the Inflation in India is to reduce to 6.8% in March 2023. Further by the end of 2023, the inflation will reduce to 5%. In 2024, Indian Inflation will be 4%. The report also said that global inflation is to reduce to 6.6% in 2023. It was 8.8% in 2022.

Key Highlights of the report

The Consumer Price Index is to decrease in more than 84% of the world’s countries
Global inflation will fall down to 6.6% in 2023. In 2024, it will further reduce to 4.3%
In developed economies like the US, France, and Russia the average inflation is to reduce to 4.6% in 2023. Further, it will reduce to 2.6% in 2024. It was 7.3% in 2022.
In developing economies like East Asian and South Asian countries, the inflation is to reduce to 8.1% in 2023. Further, it will reduce to 5.5% in 2024. In 2022, the inflation in these economies was 9.9%
In Low – Income countries the inflation is to reduce to 8.6% in 2024. In 2022, the inflation here was 14.2%

Observations made

Currently, the world is facing disinflation. This is because of decreasing fuel prices and a decrease in commodity prices. Another main reason for inflation to decline globally is the decrease in global demand.

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