Inflation may be more persistent in some parts of world: IMF

By Ovunc Kutlu

ANKARA (AA) - High inflation could be more persistent in some parts of the world than others, an official with the IMF said Thursday.

"If supply disruptions continue or inflation expectations become deanchored, inflation may become more sticky," spokesman Gerry Rice said at a news conference.

While inflation pressures have increased in most economies, they have become more serious than anticipated in some nations, he added.

Although inflation expectations generally remain anchored in most economies, it could change rapidly if supply disruptions continue, warned Rice.

"Looking ahead, we expect that supply-demand imbalances will wane next year, and this will help ease inflation pressures," he said.

Rice urged central banks to remain vigilant about inflation pressures.

The EU's annual inflation rate hit 4.4% in October, up from 3.6% in September. In the eurozone, annual inflation came in at 4.1% in October, up from 3.4% the previous month.

In the US, the consumer price index (CPI) rose 6.2% in October, the largest 12-month increase since November 1990. Core CPI jumped 4.6% year-on-year, its largest 12-month rise since August 1991.