The International Monetary Fund(IMF) has projected that the current inflation spike across the world will peak this autumn and stabilize by the middle of next year. 

In its latest World Economic Outlook released on Wednesday, the IMF said that headline inflation is projected to peak in the final months of 2021 and stabilize to pre-pandemic levels by mid-2022.

The IMF forecast headline inflation will peak at three-point-six percent for advanced economies in the fall of 2021 and decline to about two percent by mid-2022.

Emerging markets and developing economies are expected to see inflation peak at six-point-eight percent this fall and decline to about four percent next year. 

The IMF report projected that sharply rising housing prices and prolonged supply shortages in advanced and developing economies and continued food price pressures and currency depreciations in emerging markets could keep inflation elevated for longer. 

The IMF attributed the recent rise in headline inflation to pent-up demand and accumulated savings fueled by fiscal and monetary stimulus; soaring commodity prices; and input shortages and supply chain disruptions.