Targeted aid best shields poor from price shocks: IMF-Xinhua
NEW YORK, Oct. 6 (Xinhua) -- Targeted financial support, rather than broad subsidies, is the most effective way to protect vulnerable households when inflation surges, the International Monetary Fund (IMF) said Tuesday. Targeted and temporary cash transfers can cushion poorer households against spikes in the prices of essentials while limiting the burden on public finances, the IMF said in its October 2026 World Economic Outlook, titled "Navigating a Shock-Prone World: Lessons from Cost-of-Living Crises." Such assistance directs limited resources to those most in need while allowing higher market prices to signal scarcity and incentivize consumers to reduce consumption, the report said. The IMF said support should be calibrated to the temporary portion of a price shock and include cl...