Correct option is D
The correct answer is: (D) 4.2%
IMF's Global Inflation Projection for 2025
- According to the International Monetary Fund's (IMF) World Economic Outlook Update, January 2025, the global headline inflation rate is projected to decline to 4.2% in 2025, down from 5.8% in 2024. This marks a significant reduction from the peak of 8.7% in 2022.
Additional Information
Advanced Economies: Inflation is expected to converge back to target levels earlier, with projections of 2.2% by 2026.
Emerging Market and Developing Economies: Inflation is anticipated to decline more gradually, reaching 4.6% by 2026.
Factors Influencing Inflation: The decline in inflation is attributed to easing supply-side pressures, cooling labor markets, and a projected 2.6% decrease in energy commodity prices in 2025.
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