Inflation is creeping up and could reach 2% this year

. Experts say that the hike in prices is the result of a synchronized global adjustment that is boosting costs for many goods and services. The International Monetary Fund (IMF) recently warned that inflation could exceed the target of 2% this year. The IMF says that the global growth recovery is gradually pushing up prices, making it more difficult to bring down inflation rates. Inflation is currently at 1.9%, which could reach 2% by the end of this year. The IMF is concerned that this synchronized adjustment could lead to stagflation, or a situation in which inflation and unemployment both rise. Under such a scenario, monetary policymakers would be hard-pressed to come up with effective policies to revive the economy. The IMF has said that if inflation reaches 3% or above, then the global economy would be in trouble. This year, inflation has mainly been driven by increases in food and energy prices. In addition, housing costs have picked up in many parts of the world. The cost of imported goods has also increased, as has wage inflation. Inflation is also increasing in some developing countries, although less than in developed countries. Some economists believe that the recent hike in prices is a