TOKYO, October 7. /TASS/. The rapid advancement of artificial intelligence (AI), elevated energy prices, rising tariffs, and surging defense spending are driving global inflation upward, International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned.
"The AI building boom is inflationary. The energy and food shocks are inflationary. Tariffs, defense spending, and high public debt can be inflationary. And memories of the recent high inflation are still fresh," Georgieva said. She was speaking in Singapore ahead of the IMF and World Bank Autumn Meetings, scheduled for next week in Thailand.
According to Georgieva, fertilizers, food, and key industrial commodities are also growing more expensive, while adverse weather patterns from El Nino pose additional risks to food security. However, she noted that these shocks have been contained so far, thanks to energy efficiency, diversified fuel sources, strategic inventory drawdowns, and supply chain flexibility.