IMF forecasts global inflation to drop to 3.8% in 2026

Global inflation is projected to ease to 3.8 per cent in 2026 and to 3.4 per cent in 2027, the Managing Director of the International Monetary Fund said at the Annual Arab Fiscal Forum in Dubai on Monday.

Speaking at the forum, Kristalina Georgieva attributed the expected decline mainly to weaker demand and lower energy prices. She noted that despite significant shifts in geopolitics, trade policy, technology and demographic trends, global economic growth has remained steady.

Georgieva also urged greater trade integration amid rising unilateral trade agreements, saying deeper cooperation is crucial to support sustainable economic activity. "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," she said.

The fund’s outlook reflects continued moderation from recent inflation highs, although the pace of easing will vary across regions and economic sectors.