IMF predicts a decline in energy prices in the EU in 2022

Written by The Frontier Post

WASHINGTON (RIA Novosti): The International Monetary Fund predicts that energy prices in Eu-rope will decline in 2022, preventing long-term high inflation, Alfred Kammer, director of the European department of the fund, told a press conference.
“We do not expect any kind of inflationary spiral in Europe. The high inflation we are seeing now is actually driven by one major factor – rising energy prices, and we expect it to subside in 2022,” Kammer said.
He recalled that oil pri-ces are returning to levels before the coronavirus pandemic, and this is expected. In addition, the price of natural gas has increased several times over the year, Kammer recalled.
“This is a question of su-pply and demand mismatch … We also expect these gas prices, these surges, to fade in the second quarter of 2-022. But the other part of t-he story is supply chain disruption and supply-demand mismatch,” Kammer said.

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