Disinflation progress in US has slowed, risks on upside (Il Sole 24 Ore Radiocor) - New York, 16 Jul - The IMF confirmed its April report projecting global inflation to slow to 5.9% this year from 6.7 percent last year, broadly on track for a soft landing.

But it said that in some advanced economies, especially the United States, progress on disinflation has slowed, and risks are to the upside.

Further challenges to disinflation in advanced economies could force central banks, including the Federal Reserve, to keep borrowing costs higher for even longer, Gourinchas said.

"That would put overall growth at risk, with increased upward pressure on the dollar and harmful spillovers to emerging and developing economies." Gourinchas also said the deterioration in public finances has left many countries more vulnerable than foreseen before the pandemic. "Gradually and credibly rebuilding buffers, while still protecting the most vulnerable, is a critical priority," he said.

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(RADIOCOR) 16-07-24 19:25:42 (0725) 5 NNNN