IMF: Cost-of-living crises drive lasting rise in inflation expectations

The IMF reports that cost-of-living crises have fueled a lasting rise in inflation expectations, as surging food and energy costs erode real wages and disproportionately hurt poorer households. The finding suggests inflation may be more persistent than previously assumed, complicating central bank efforts to return to target. The report is based on IMF analysis, with the exact magnitude and duration of the expectation shift not fully specified.