Global inflation to fall to 3.8% this year, says IMF chief

MD Georgieva says that global growth has held up 'remarkably well' amid geopolitical shifts

Reuters February 02, 2026 Less than a minute read

The government has agreed to the need for a mini-budget if revenues fall short of expectations by end-December 2025, according to the IMF. Photo: file

Global inflation is expected to fall to 3.8% this year and to 3.4% in 2027, helped by softer demand and lower energy prices, the IMF chief said on Monday.

Managing Director Kristalina Georgieva said in a speech in the Annual Arab Fiscal Forum in Dubai that global growth has held up 'remarkably well' amid profound shifts in geopolitics, trade policy, technology, and demographics.

Read: Fuel prices likely to rise from Feb 1 amid inflation pressures

Georgieva also called for more trade integration as unilateral trade agreements are seen to increase. "In the world of trade fragmentation, more trade integration is absolutely paramount," she added.

"What we have seen this year is that trade did not go down the way we feared it would. In fact trade is growing slightly slower than global growth,” Georgieva said.