Policymakers in the U.S. and other major economies have quelled the worst inflation in four decades without tumbling into recession, the International Monetary Fund said Tuesday.

The good news for the global economy is that the battle against inflation has largely been won, said Pierre-Olivier Gourinchas, the chief economist of the International Monetary Fund, on Tuesday.

The International Monetary Fund projects global headline inflation will fall to 3.5% year-over-year by the end of 2025 from 5.8% in 2024 Rising market volatility was among the risks the agency highlighted to global growth A spike in commodity prices would especially hurt lower-income nations,