Lagarde Leads Chorus Warning That Inflation Must Be Anchored
- Supply constraints, volatile inflation among key constraints
- Central banks brace for ‘greenflation,’ climate change risks
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The global economy may be headed for a new era of volatile inflation, making it even more crucial to anchor expectations for where prices are headed, central bank governors warned Friday.
Policymakers cautioned that hopes for a quick cooling in inflation pressures next year may prove premature. More than a dozen central bankers gathered in a conference in Bangkok organized by the Bank of Thailand and the Bank for International Settlements. Climate change, geopolitics and shifting population growth mean prices may remain elevated for longer, they said.