The International Monetary Fund’s (IMF) latest World Economic Outlook report paints a concerning picture for global economic stability, forecasting a rise in inflation rates. In its prediction for 2025 and 2026, the IMF expects inflation to reach 4.3% and 3.6%, respectively. Notably, this forecast predicts an upward revision of inflation expectations among developed economies. The U.S., specifically, is expected to see a surge in inflation rates, with projections indicating a one percentage point increase in overall inflation. This rise is attributed not only to tariffs but also other factors contributing to price fluctuations. Furthermore, the report notes that the depreciation of the U.S. dollar has been orderly, without triggering any significant disruptions or turmoil within currency markets. The Federal Reserve must remain attentive to ensure inflation expectations don’t impact wage growth negatively.