Global inflation

In 2022, the IMF has projected inflation to be around 5.7 percent for advanced economies and 8.7 percent for the emerging market and developing economies.

Central Bank acting Governor Benjamin Popoitai said, “The Russian-Ukraine war has brought on significant disruptions to the global supply of energy and food resulting in high commodity prices and inflation rising to record highs.”

At the same time, some major economies continue to provide fiscal support to sustain recovery efforts, while the emerging market and developing economies have reduced fiscal support as a direct result of rising public debt levels. 

Moreover, some central banks have opted to raise policy rates to curb the threat of rising inflation.