The IMF warns that food and energy price increases will become more frequent amid conflicts and economic shocks

The International Monetary Fund warns that increases in food and energy prices could become more frequent amid conflicts and economic shocks. In research published on Tuesday, the institution shows that such crises reduce living standards, exacerbate poverty, and deepen inequalities, particularly among low-income households.

The study analyzes measures adopted by governments over the past three decades and includes a model that assesses the impact of inflation on families that spend a larger share of their income on food and energy. According to the IMF, sharp price increases have become recurrent over the past five years, following Russia's invasion of Ukraine and the outbreak of new conflicts in the Middle East.

The institution warns that price caps and reductions in consumption taxes can cost three to six times more than the initial value of the intervention, while producer subsidies can end up costing 22 times more. The IMF recommends targeted support for vulnerable households and reforms adopted before crises occur.

The global economy is estimated to grow by 3% in 2026, but the pace remains below the recent average.