Experts from the International Monetary Fund (IMF) have warned about the growing threat of inflation to the global economy, AzerNEWS reports, citing the Financial Times.

According to the information, IMF analysts believe that a renewed escalation of conflict in the Middle East could fuel global inflation and disrupt international supply chains. The IMF has raised its inflation forecast for 2026 to 4.7% while lowering its global economic growth forecast to 3.0%. The report notes that the disinflation trend has stalled, meaning central banks may be forced to raise interest rates again.

The IMF's report states that the most immediate risk to the global economy is the situation in the Middle East. A renewed increase in geopolitical tensions could weaken economic growth and intensify inflationary pressures.

In its latest World Economic Outlook, the Fund predicted global inflation will increase from 4.1 per cent in 2025 to 4.7 per cent this year - higher than it estimated in April - before receding to 3.9 per cent in 2027.

Global growth will retreat from 3.5 per cent in 2025 to 3 per cent this year, marginally weaker than previously predicted, before bouncing back to 3.4 per cent in 2027, the IMF said.

The outlook was released after renewed military strikes between the US and Iran prompted Trump to tell reporters at the NATO summit in Ankara that the ceasefire pact with Tehran is "as far as I’m concerned?.?.?.?over". Brent crude prices rose more than 5 per cent to around $78 a barrel on Wednesday, while major equity indices fell back.