The current moment is one of inflationary pressure and geopolitical tension, but the International Monetary Fund (IMF) has issued a clear warning to governments: supporting consumers with generalised energy subsidies may worsen the problem. The institution led by Kristalina Georgieva calls for avoiding measures with high budgetary costs that are difficult to...
IMF warns that generalised energy subsidies may prolong inflationary pressures
Wednesday, 15 April 2026RSS
Context & Explainers
The International Monetary Fund (IMF) is a global organisation that monitors the world economy, provides policy advice, and offers financial support and technical assistance to its member countries; it is led by Kristalina Georgieva. Its forecasts and reports influence markets and national policies — for example, the IMF recently raised its 2026 global growth forecast to about 3.0%.
Inflation measures how much general prices rise over time, usually reported year‑on‑year to compare a month with the same month a year earlier. Portugal’s National Institute of Statistics (INE) estimated January inflation at 1.9% year‑on‑year, down 0.3 percentage points from December, which affects rents, wages and everyday purchasing power for residents.
