Gopinath: Risk of Underestimating Inflation in 2026

Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund (IMF), has warned that there is a significant risk that economic models and policymakers might be underestimating the persistence of inflation into 2026. This suggests that elevated price pressures could remain a challenge for central banks longer than currently anticipated, potentially requiring more aggressive or prolonged monetary tightening.