Bangladesh, March 9 -- The escalating conflict in the Middle East could trigger a new wave of global inflation if energy prices continue to rise, International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned on March 9. Her remarks highlight growing concerns among policymakers and economists that geopolitical instability in one of the worlds most energy-rich regions may undermine fragile economic stability and reignite inflationary pressures that many countries have spent the past two years trying to control.

Speaking at a symposium hosted by Japans finance ministry, Georgieva said the latest conflict represents another major test for the global economy, which has only recently begun to stabilize after the shocks of the...