IMF’s Gopinath sees inflation, growth risks if Israel-Hamas war widens

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The International Monetary Fund’s No. 2 official says that the war between Israel and Hamas could spur inflation and hamper global growth if it turns into a wider conflict that causes a significant increase in oil prices.

Modeling by the organization, whose mandate includes global economic surveillance, shows that a 10 percent increase in oil prices leads to inflation being 0.4 percentage points higher a year later, Gita Gopinath, the fund’s First Deputy Managing Director, said on Wednesday in an interview with Bloomberg TV’s Francine Lacqua.

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Guardians of world finance have gathered here for the annual meetings of the IMF and World Bank against the backdrop of ongoing fighting after Hamas attacked Israel from the Gaza Strip.

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