IMF warns Middle East conflict could fuel global inflation, oil price hike risk

• IMF MD Kristalina Georgieva warns Middle East conflict poses significant global inflation risks.
• A 10% sustained oil price increase could boost global inflation by 40 basis points.
• Georgieva advises policymakers to "think of the unthinkable and prepare for it" amidst new global challenges.
• Conflict complicates central bank outlook, forcing a trade-off between growth and countering inflation.
• Emerging Asian central banks, including RBI, face pressure to manage fuel costs, capital outflows, and currency stability.