World Economy at grave risk

IMF’s Georgieva warns Middle East conflict could push global inflation higher

March 09, 2026

TOKYO: International Monetary Fund Managing Director Kristalina Georgieva on ​Monday warned of inflation risks from the Middle East conflict, saying a 10 percent ‌increase in ‌oil ​prices, if ‌persistent ⁠through ​most of ⁠the year, would result in a 40-basis-point increase in global inflation.

“We ⁠are seeing ‌resilience ‌tested again ​by ‌the new ‌conflict in the Middle East,” Georgieva said, speaking in ‌a symposium hosted by Japan’s finance ministry.

“My ⁠advice ⁠to policymakers in this new global environment is think of the unthinkable and prepare for it,” she ​said.
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