The global cost of living has surged, with inflation rising to 40-year highs in some economies. As countries recover from the COVID-19 pandemic, supply-demand imbalances linger, dragging on economic activity and pushing prices up. At the same time, energy and food prices have spiked amid worsening geopolitical tensions.

What do these conditions mean for global inflation prospects? The International Monetary Fund’s (IMF) forthcoming October 2022 World Economic Outlook examines two economic forces that could impact inflation going forward. One chapter looks at wage dynamics post-COVID-19, wage-price spiral risks, and how policymakers can respond. Another chapter investigates the potential near-term effects of critical climate policies on inflation and economic activity and how they can be best designed.

After briefly summarizing the chapters, the presenters will discuss their findings with PIIE senior fellows Olivier Blanchard and Pinelopi Koujianou Goldberg. A Q&A with the audience will follow.