IMF / Ukraine, Argentina, Supply Chain Disruptions




31 Mar 2022


WASHINGTON DC, United States



IMF / Ukraine, Argentina, Supply Chain Disruptions
1. Wide shot, IMF building Exterior
2. Wide shot, IMF logo on building
31 March 2022, WASHINGTON DC
3. SOUNDBITE (English) Gerry Rice, Head of the Communications Department, IMF
“The poor are most likely to be affected with a large share of expenditure, with a larger share of their expenditure on essential items like food and fuel, the concentration of effects in these categories mean that the cost-of-living squeeze, if you like, hurts the poor most. Agricultural communities will face conflicting effects of these shocks. Higher prices for inputs, think about fuel, think about fertilizers and outputs, agricultural commodities and how these play out, the eventual balance depends on local conditions, but overall, it's going to be the low-income households and producers that will be hurt most. That's within countries. Across countries, higher prices for international food commodities impact countries differently, of course, depending on the food share of households, consumption baskets and the types of food consumed. Again, households in low-income countries are particularly exposed to changes, for example, in the price of staple cereals with their diets often concentrated in just one type of grain. Low-income countries where wheat, corn and sorghum are a large part of the diet have already seen inflation, almost only driven by rising food prices. And some emerging market economies, including in the Middle East and Central Asia, have also been similarly affected by higher global food prices.”

4. Wide shot, Gerry in studio

5. SOUNDBITE (English) Gerry Rice, Head of the Communications Department, IMF

“We believe that Argentina's program, now supported by the IMF with this financing, sets pragmatic and realistic objectives along with credible policies, which when implemented will strengthen macroeconomic stability and begin tackling Argentina's deep-seated challenges. The program aims to strengthen public finances and start the process of reducing persistently high inflation through a multi-pronged strategy involving a gradual elimination of monetary financing of the fiscal deficit and an enhanced monetary and exchange rate policy framework. The program also envisages steps to strengthen the domestic peso debt market. The effectiveness of government spending, labor and gender inclusion, and the competitiveness of key sectors,”
6. Wide shot, Gerry in studio
7. SOUNDBITE (English) Gerry Rice, Head of the Communications Department, IMF
“Everyone is looking at the disruption in supply chains. The war induced supply disruptions, notably for food and energy, will increase the cost of living, particularly for low-income households, and targeted fiscal support for those households can help cushion the impact. They will add, these war induced supply disruptions, will also add to preexisting inflation pressures and if signs emerge that inflation will be high over the medium term and there is a tangible risk of inflation expectations de-anchoring, I say if, central banks may be forced to react even faster than currently anticipated by raising interest rates. So, policymakers should of course continue to communicate clearly the outlook for inflation and monetary policies,”
8. Wide shot, IMF building exterior
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  • Brian Walker
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