US inflation has not ‘turned the corner yet’, IMF official warns

Inflation in the United States has not “turned the corner yet” and it is too early for the Federal Reserve to declare victory in the fight on rising prices, a top IMF official said in an interview with the Financial Times on Thursday.

Gita Gopinath, a deputy managing director of the Fund, urged the US central bank to press ahead with rate rises this year.

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“If you see the indicators in the labour market and if you look at very sticky components of inflation like services inflation, I think it’s clear that we haven’t turned the corner yet on inflation,” she told the newspaper.