IMF head Georgieva: Inflation is a "tax for low-income earners"

IMF chief Kristalina Georgiewa has warned of the dangers of persistently high inflation.

"I am convinced that if we do not restore price stability, we would undermine growth prospects, create more uncertainty for investors and put consumers in a very difficult position," the head of the International Monetary Fund said at the annual meeting in Washington on Thursday from the IMF and the World Bank.

Inflation is a kind of “tax on the lower-income sections of our society”.

You can't allow inflation to become a "leaderless train" - that's bad for growth and bad for people.

At the same time, Georgieva stressed that a global recession could be avoided.

The IMF currently estimates the risk of a global economic downturn at 25 percent.

Even if growth remains positive, high inflation would feel like a recession for hundreds of millions of people.

Central banks such as the Fed in the USA or the European Central Bank have recently raised the key interest rate significantly in the fight against high consumer prices.

The IMF has repeatedly emphasized that central banks should continue down this path.