IMF Sees Mixed Global Inflation Prospects Amid Rising Tariffs

WASHINGTON / GLOBAL — The International Monetary Fund (IMF) issued a new assessment on October 2, 2025, warning that the global inflation outlook is uneven as nations impose higher tariffs.

While some countries such as the U.S. have absorbed tariff costs to partly cushion consumers, core inflation continues to rise. In places like the UK, Australia, and India, headline inflation is accelerating. In contrast, China and certain Asian economies are facing weaker demand, helping to suppress inflation pressures there.

The IMF also flagged early signs of a global growth slowdown and cautioned about the economic impact of the U.S. government shutdown, which took effect mid‑week. How long that shutdown lasts could influence not only U.S. fiscal operations, but also global supply chains and investor confidence.

Economists suggest the upcoming World Economic Outlook report (due October 14) will offer greater clarity and forecasts for how inflation, trade policies, and geopolitical tensions may reshape global recovery paths.