The International Monetary Fund (IMF) estimated that every 10% increase in oil prices will add about 40 points to global inflation. However, it warned that this is a 'general rule' and will depend on the duration and intensity of the conflict in the Middle East. A spokeswoman for the organization, Julie Kozack, stated that the war will have a direct impact on energy prices and will also have financial implications. During a press conference held this Thursday in Washington, the spokeswoman noted that within the inflationary process, an increase in food prices is expected. 'The closure of the strait blocks 20% of the supply of oil and liquefied gas, which affects production,' she indicated. She added that they expect 'increases in the prices of basic commodities, but the impact will be determined by how long the Strait of Hormuz remains closed.' 'The increase in food prices could be significant depending on the duration of the conflict,' Kozack insisted. The IMF said that 'if the conflict is prolonged, higher energy prices will lead to an increase in general inflation'.
