Inflation has risen so fast it’s even surprised central banks. Can they do anything to bring it down?

Aug 10, 2022

The need for central banks to act is becoming more urgent as inflation climbs to multi-decade highs. Image: Unsplash/Dmitry Demidko

Tobias Adrian

Senior Vice President, Federal Reserve Bank of New York

Christopher Erceg

Deputy director, Monetary and Capital Markets Department, IMF

Fabio M. Natalucci

Deputy Director of the Monetary and Capital Markets Department, IMF

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Forward implied path of one-year real rates, to tame inflation. Image: Bloomberg Finance LP, IMF Yield Curve Manager

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Beyond GDP: read the full transcript here

Inflation percentage over the coming 5 years.

Markets signal a high probability of inflation rates of over 3 percent persisting in coming years in the United States, euro area and the United Kingdom. Image: IMF staff calculations

Rate of inflation expected by respondents in the United States and Germany in the next year.

Consumers and businesses have also become increasingly concerned about upside inflation. Image: University of Michigan, Bundesbank consumer surveys

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