Inflation is a persistent increase in the overall price level of goods and services in an economy over time. It is one of the most closely watched economic indicators as it affects the purchasing power of a currency. Inflation can be caused by various factors such as an increase in the money supply, higher production costs, and supply chain disruptions. In recent years, many countries have experienced inflationary pressures due to the COVID-19 pandemic, which has disrupted global supply chains and caused a surge in demand for certain goods and services.
Inflation can have both positive and negative effects on an economy. On one hand, moderate inflation can stimulate economic growth by increasing consumer spending, encouraging investment, and reducing debt burdens. On the other hand, high or volatile inflation can harm economic growth by reducing consumer purchasing power, causing uncertainty, and leading to higher interest rates. In extreme cases, hyperinflation can lead to a collapse in the value of a currency, as was seen in countries like Zimbabwe and Venezuela.
Central banks and governments use a range of tools to manage inflation, such as setting interest rates, controlling the money supply, and implementing fiscal policies. However, finding the right balance between controlling inflation and promoting economic growth is a complex task. Ultimately, sustained economic growth with low inflation is the goal for most economies, and achieving this requires a delicate balance of policy decisions and market forces.
Inflation Rate by Country
CountryInflation Rate [2022]Percentage Change [vs. 2021]1Zimbabwe284.94%189.13%2Venezuela210%-86.78%3Sudan154.91%-56.86%4Turkey73.13%273.11%5Argentina72.37%49.49%6Sri Lanka48.19%708.56%7Suriname47.56%-19.55%8Yemen43.85%-4.05%9Iran39.99%-0.35%10Ethiopia33.64%25.62%11Moldova28.48%458.43%12Ghana27.18%172.34%13Haiti26.82%68.26%14Sierra Leone25.91%118.28%15Angola21.69%-15.83%16Estonia21%367.71%17Ukraine20.55%119.55%18Nigeria18.91%11.56%19Malawi18.45%97.54%20Lithuania17.61%280.35%21South Sudan17.6%-41.78%22Turkmenistan17.5%17.06%23Burundi17.34%108.66%24Belarus16.51%74.71%25Latvia16.45%407.72%26Czech Republic16.34%325.52%27Myanmar16.16%343.96%28São Tomé and Príncipe15.05%84.89%29Laos15%300%30Mongolia14.83%108.58%31Burkina Faso14.2%267.88%32Kazakhstan13.97%74.63%33Hungary13.88%170.57%34Poland13.81%169.73%35Russia13.77%105.83%36Romania13.34%164.16%37Montenegro12.76%431.67%38Guinea12.72%0.95%39Zambia12.53%-43.1%40Bulgaria12.4%336.62%41Azerbaijan12.24%83.78%42Palau12.2%2611.11%43Pakistan12.15%36.52%44Kosovo12%262.54%45Netherlands11.98%323.32%46Slovakia11.94%323.4%47Georgia11.65%21.73%48Chile11.63%157.3%49Serbia11.46%180.2%50Comoros11.44%-6455.56%51The Gambia11.31%53.46%52Mozambique11.26%97.89%53Botswana11.16%66.82%54Uzbekistan11.15%2.76%55Republic of Macedonia10.61%228.48%56Bosnia and Herzegovina10.5%425%57Mauritius10.18%151.98%58Nicaragua9.94%102.03%59Barbados9.9%223.53%60Madagascar9.8%68.38%61Croatia9.76%273.95%62Colombia9.75%178.57%63Algeria9.74%34.72%64Rwanda9.5%1058.54%65Paraguay9.48%97.91%66Belgium9.47%194.1%67Brazil9.41%13.37%68Greece9.17%1508.77%69United Kingdom9.12%252.12%70Uruguay9.11%17.55%71Dominican Republic9.02%9.47%72Jamaica9%52.54%73Somalia9%94.81%74Slovenia8.92%367.02%75Costa Rica8.87%412.72%76Spain8.83%185.76%77Italy8.74%350.52%78Honduras8.62%92.41%79Armenia8.54%18.61%80Antigua and Barbuda8.52%422.7%81Egypt8.5%88.89%82Germany8.46%163.55%83Democratic Republic of the Congo8.44%-6.12%84Iceland8.43%89.01%85Ireland8.4%248.55%86Luxembourg8.39%141.79%87Tajikistan8.25%-8.03%88Lesotho8.12%34.21%89Tunisia8.08%41.51%90United States of America8.05%71.64%91Mexico8.03%41.12%92Mali8%109.97%93Cyprus7.99%255.11%94Portugal7.9%740.43%95Austria7.73%181.09%96Bhutan7.66%-39.3%97Guyana7.59%128.61%98Senegal7.5%244.04%99Peru7.46%87.44%100Kenya7.38%20.79%101Eritrea7.35%10.69%102El Salvador7.29%110.09%103Sweden7.24%173.21%104Denmark7.2%271.13%105Mauritania7.1%88.33%106East Timor7%85.19%107Liberia6.91%-11.64%108Canada6.9%102.94%109India6.89%25.05%110San Marino6.88%230.77%111South Africa6.74%47.81%112Belize6.6%103.7%113Papua New Guinea6.6%46.99%114Djibouti6.59%458.47%115Finland6.55%216.43%116Central African Republic6.53%53.29%117Australia6.5%130.5%118Iraq6.47%7.12%119Uganda6.44%191.4%120Marshall Islands6.4%145.21%121Namibia6.4%76.8%122Guatemala6.37%49.53%123Thailand6.33%414.63%124New Zealand6.28%59.39%125Nepal6.26%73.89%126Albania6.24%205.88%127Morocco6.2%342.86%128Bangladesh6.15%10.61%129Aruba6.04%716.22%130Malta5.87%726.76%131France5.81%182.04%132The Bahamas5.66%94.5%133Togo5.59%29.4%134Singapore5.54%139.83%135Guinea-Bissau5.52%68.81%136Ivory Coast5.52%32.69%137Libya5.52%99.28%138Philippines5.32%35.37%139Andorra5.29%211.18%140Dominica5.28%236.31%141United Arab Emirates5.22%2800%142Cambodia5.21%78.42%143Equatorial Guinea5.14%-5811.11%144Trinidad and Tobago5.05%236.67%145Benin5%194.12%146Chad4.94%-741.56%147Eswatini4.87%30.91%148Fiji4.75%2868.75%149Norway4.7%35.06%150Indonesia4.63%196.79%151Cameroon4.58%102.65%152Vanuatu4.58%95.73%153Israel4.52%203.36%154Grenada4.51%269.67%155Niger4.51%17.45%156Qatar4.48%99.11%157Puerto Rico4.39%82.16%158Kuwait4.32%27.06%159Maldives4.27%1933.33%160Seychelles4.11%-57.93%161Tanzania3.96%7.32%162Panama3.94%141.72%163Jordan3.8%187.88%164Vietnam3.76%105.46%165Solomon Islands3.74%-3500%166Bahrain3.5%-673.77%167Gabon3.5%224.07%168Republic of the Congo3.5%77.66%169Malaysia3.23%30.24%170Ecuador3.21%2369.23%171Bolivia3.19%331.08%172Oman3.11%100.65%173Taiwan3.1%57.36%174Switzerland3.06%427.59%175Saudi Arabia2.7%-11.76%176Macau2.51%8266.67%177Brunei2.5%44.51%178People's Republic of China2.17%155.29%179Nauru2%66.67%180Japan1.99%-929.17%181Hong Kong1.9%21.02%
Inflation by Country
Inflation rates are an important economic indicator that can provide useful insight into the overall fiscal health of countries around the world. According to data from the IMF, which tracked the inflation rate by country for 2022, there are a number of interesting trends and patterns at play. For example, Zimbabwe has the highest inflation rate in the world at 284.94%, which is far above the second country with the highest inflation, Venezuela, with an inflation rate of 210%. This is due to a number of factors including hyperinflation caused by the country’s long standing economic crisis and hefty sanctions by other countries. By contrast, some countries have very low inflation rates such as Qatar [4.48%] and Switzerland [3.06%]. These countries typically have strong economies with low debt levels, low population growth rates, and healthy trade relations with their neighbors.
There are also some differences in regional trends when it comes to inflation rates. African nations tend to generally have higher inflation rates than those found elsewhere in the world due to a variety of factors including political instability, poor infrastructure, and frequent natural disasters [such as droughts]. On the other hand, many European countries tend to boast some of the lowest inflation levels on earth due to their strong macroeconomic policies and favorable global financial conditions. In Asia Pacific, meanwhile, Japan has one of the lowest inflation rates in 2022 at 1.99%. This is thanks primarily to its effective fiscal policies and widespread adoption of digital technologies that increase efficiency across industries within its borders.
Overall, while there is great variation between countries when it comes to their respective inflation levels – ranging from extreme highs approaching 300% in Zimbabwe all the way down to around 2% like in Japan and China – this data does give us valuable insight into a nation’s overall economic health and performance over time. Countries with healthier fiscal systems tend to display lower overall inflation levels year after year while those with weaker economies will often experience more severe spikes in prices across consumer goods and services due to structural deficiencies or external pressures such as sanctions imposed by other nations.
Countries With Highest Inflation
According to the IMF, in 2022 the 20 countries with the highest inflation were Zimbabwe, Venezuela, Sudan, Turkey, Argentina, Sri Lanka, Lithuania, Estonia, Ukraine, Moldova, Suriname, Ghana, Haiti, Sierra Leone, Angola, Nigeria, Malawi, Iran, Yemen, and Ethiopia. Zimbabwe had the highest inflation, with an inflation rate of 284.94%, followed by Venezuela with an inflation rate of 210%. Sudan, Turkey, and Argentina had the next three highest inflation rates, at 154.91%, 73.13%, and 72.37% respectively.
The remaining 17 countries on the list of countries with the highest inflation range from Sri Lanka [48.19%] to Lithuania [17.61%]. In terms of geographical distribution, Europe has four nations in the list of countries with the highest inflation : Estonia [21%], Ukraine [20.55%], Moldova [28.48%], and Lithuania [17.61%]. Africa’s countries with the highest inflation are represented by Sudan, Ghana, Haiti, Sierra Leone, Angola, Nigeria, Ethiopia, and Malawi, who all have an inflation rate above 15%. The Middle East’s countries with the highest inflation are Iran [39.99%], Turkey [73%], and Yemen [43%], while Asia has Sri Lanka with an inflation rate of 48%. Finally, South America only has two of its countries in the top 20 countries with the highest inflation: Venezuela, with an inflation rate of 210%, and Suriname, at a 47.56% inflation rate.
Countries With Highest Inflation Rates
1. Zimbabwe – 284.94% 2. Venezuela – 210% 3. Sudan – 154.91% 4. Turkey – 73.13% 5. Argentina – 72.37% 6. Sri Lanka – 48.19% 7. Suriname – 47.56% 8. Yemen – 43.85% 9. Iran – 39.99% 10. Ethiopia – 33.64% 11. Moldova – 28.48% 12. Ghana – 27.18% 13. Haiti – 26.82% 14. Sierra Leone – 25.91% 15. Angola – 21.69% 16. Estonia – 21% 17. Ukraine – 20.55% 18. Nigeria – 18.91% 19. Malawi – 18.45% 20. Lithuania – 17.61%
Highest Inflation Rate in the World
Zimbabwe has the highest inflation rate in the world, with an inflation rate of 284.94%. This means that prices for goods and services are essentially out of control. Many everyday items such as food, clothing, transportation, and even basic necessities like medicine have become exorbitantly expensive. In fact, the cost of living in Zimbabwe is now more than double what it was just two years ago. The country’s financial situation is so dire that many citizens cannot afford to purchase necessary items or put food on their table. Additionally, the value of Zimbabwean currency has plummeted to an all-time low. As a result of this record-breaking inflation rate, many citizens have resorted to bartering in order to get by or have been forced to leave their home country in search of employment abroad.
Inflation Rate by Country
Albania
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Algeria
Andorra
Angola
Antigua and Barbuda
Argentina
The inflation rate in Argentina is 72.37%, ranking the country fifth in terms of the highest inflation rate in the world. This rate has been increasing by 49.49% since 2021. The rising cost of living has taken a toll on Argentine citizens, forcing many to take drastic measures such as significantly reducing their spending and taking out loans just to make ends meet. In response, the government has implemented various economic policies aimed at mitigating the effects of inflation, including tax reliefs and increases in public sector salaries. However, these have so far had little effect on curbing inflationary pressures. As such, Argentina's high inflation rate remains a major concern for its citizens and policymakers alike.
Armenia
Aruba
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Belize
Benin
Bhutan
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei
Bulgaria
Burkina Faso
Burundi
Cambodia
The inflation rate in Cambodia is 5.21%, ranking the country one hundred forty-second in terms of the highest inflation rate in the world. In comparison to 2021, Cambodia’s inflation rate increased by 78.42%. As a result of this significant uptick, many Cambodians are feeling the crisis of rising costs for basic goods and services such as food, rent, utilities, and transportation. In an effort to combat this issue, The Royal Government of Cambodia announced targeted measures designed to stem rising prices by reducing import taxes and increasing government subsidies for essential commodities. These initiatives have yet to be fully implemented.
Cameroon
Canada
Central African Republic
Chad
Chile
Colombia
Comoros
Costa Rica
The inflation rate in Costa Rica is 8.87%, ranking the country seventy-fifth in terms of the highest inflation rate in the world. The inflation rate in Costa Rica increased by 412.72% since 2021. This is a significant challenge for the national economy and its citizens, who have seen their purchasing power erode as prices rise at an ever-accelerating pace. These higher prices have already caused financial hardship for many households, reducing their ability to purchase basic needs like food, clothing, and medicine.
Croatia
Cyprus
Czech Republic
Democratic Republic of the Congo
Denmark
The inflation rate in Denmark is 7.2%, ranking the country one hundred and fourth in terms of the highest inflation rate in the world. This rate has increased by over 271.13% since 2021, making it even more difficult for citizens to maintain their standard of living. With this rapid growth in prices, citizens may need to alter their budgeting plans and adjust to higher costs for everyday items such as food and transport. Moreover, businesses in Denmark are also required to keep up with these changing prices, as failure to do so could lead to a decrease in profit margins and an overall reduction in economic activity.
Djibouti
Dominica
Dominican Republic
East Timor
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Estonia
Eswatini
Ethiopia
The inflation rate in Ethiopia is 33.64%, ranking the country tenth in terms of the highest inflation rate in the world. This rate has increased by over 25% since 2021, causing serious problems for citizens who are already struggling with poverty and food insecurity. With prices of basic goods continually being driven up, families are finding it increasingly difficult to make ends meet. The Ethiopian government is taking steps to try and curb this high rate of inflation, such as reducing taxes on essential commodities and setting price controls on certain products. However, these efforts have not yet been effective enough to make a significant impact on the high cost of living within the country.
Fiji
Finland
France
Gabon
Georgia
Germany
Ghana
Greece
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
The inflation rate in Guyana is 7.59%, ranking the country ninety-seventh in terms of the highest inflation rate globally. This rate has increased significantly since 2021, with a rise of 128.61%. The rising cost of goods and services has caused major economic issues for the nation's citizens, leaving many unable to afford basic necessities they require. To counteract this rapid increase, the government has taken steps toward implementing fiscal and monetary policies to keep inflation under control. Despite these efforts, the inflation rate continues to remain high.
Haiti
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Iran
Iraq
Ireland
Israel
Italy
Ivory Coast
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Kosovo
Kuwait
Laos
Latvia
Lesotho
The inflation rate in Lesotho is 8.12%, ranking the country eighty-eighth in terms of the highest inflation rate in the world. Despite being relatively small and having a largely rural population, Lesotho is facing an increasing price level due to the rising global demand for essential goods. Since 2021 alone, the inflation rate increased by 34.21%. This has caused prices for basic necessities such as food, housing, and health care to increase significantly in recent years.
Liberia
Libya
Lithuania
Luxembourg
The inflation rate in Luxembourg is 8.39%, ranking the country eighty-sixth in terms of the highest inflation rate in the world. In the last year, the inflation rate has grown by 141.79%, indicating a significant economic crisis in the country. This high inflation rate has had an adverse effect on people’s purchasing power and quality of life as it has driven up prices for basic necessities such as food and housing.
Macau
Madagascar
Malawi
Malaysia
The inflation rate in Malaysia is 3.23%, ranking the country one hundred sixty-ninth in terms of the highest inflation rate in the world. Malaysia’s inflation rate has been increasing since 2021, with a growth of 30.24% in that time period. This means that prices of goods and services are rising faster than incomes, thus reducing purchasing power and resulting in an overall decrease in living standards. In order to combat this problem, the Malaysian government is taking several steps such as implementing progressive taxes and providing subsidies for necessities like food and energy. These measures are meant to help keep prices stable and ensure that citizens are able to afford everyday items.
Maldives
Mali
Malta
Marshall Islands
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Montenegro
Morocco
The inflation rate in Morocco is 6.2%, ranking the country one hundred twenty-seventh in terms of the highest inflation rate in the world. Morocco’s inflation rate has risen steadily since 2021, jumping by 342.86%. Factors such as rising food prices and increased taxes on fuel and other commodities are being blamed for this rapid increase. Moreover, local analysts suggest that Morocco's persistent economic instability has also contributed to this trend, with citizens bearing the brunt of these hardships through rising costs of living.
Mozambique
Myanmar
Namibia
Nauru
Nepal
Netherlands
New Zealand
Nicaragua
Niger
Nigeria
Norway
Oman
Pakistan
The inflation rate in Pakistan is 12.15%, ranking the country forty-third in terms of the highest inflation rate in the world. Pakistan’s inflation rate has been on a steady upward trajectory since 2021, rising by 36.52% over the course of the year. This is having significant impacts on businesses and households alike as they struggle to keep up with prices that are increasing much faster than wages and salaries. The current inflation rate is straining household budgets, forcing people to make cuts in other areas or take on more debt just to maintain their standard of living. It is also putting tremendous pressure on businesses as they battle to remain competitive while trying to fend off rising input costs associated with the higher inflation rate. The government has yet to implement any effective policy measures that could help alleviate the burden felt by citizens across the country due to this high inflation rate.
Palau
Panama
Papua New Guinea
Paraguay
People's Republic of China
Peru
Philippines
Poland
Portugal
Puerto Rico
Qatar
Republic of Macedonia
Republic of the Congo
Romania
Russia
Rwanda
San Marino
São Tomé and Príncipe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Slovakia
Slovenia
Solomon Islands
Somalia
South Africa
South Sudan
Spain
Sri Lanka
Sudan
Suriname
Sweden
Switzerland
Taiwan
Tajikistan
Tanzania
Thailand
The Bahamas
The Gambia
Togo
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States of America
Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
Yemen
The inflation rate in Yemen is 43.85%, ranking the country eighth in terms of the highest inflation rate in the world. While Yemen’s inflation rate is one of the highest in the world, it decreased by 4.05% since 2021, showing a slight improvement in economic conditions. Consequently, this high inflation rate leads to more expensive essential goods such as food and fuel for civilians in Yemen which will only exacerbate existing poverty levels. Despite some progress in terms of decreasing the rate of inflation, Yemen remains one of the most economically unstable countries in the world.
Which country has the highest inflation rate in the world?
Top 10 Countries with the Highest Inflation Rates [Trading Economics Jan 2022] With an inflation rate that has soared above one million percent in recent years, Venezuela has the highest inflation rate in the world.nullInflation Rate by Country 2024 - World Population Reviewworldpopulationreview.com › country-rankings › inflation-rate-by-countrynull
Which country has the lowest inflation rate in 2024?
Of the major developed and emerging economies, China had the lowest inflation rate at 0.1 percent in March 2024. On the other end of the spectrum, the inflation rate in Russia stood at 7.7 percent.nullMonthly inflation rates in developed and emerging countries 2021-2024www.statista.com › statistics › monthly-inflation-rates-developed-emerging...null
What country has the lowest inflation?
World's Lowest Inflation Rates.
What is the annual inflation rate in the world?
World inflation rate for 2022 was 7.97%, a 4.5% increase from 2021. World inflation rate for 2021 was 3.47%, a 1.53% increase from 2020. World inflation rate for 2020 was 1.94%, a 0.27% decline from 2019. World inflation rate for 2019 was 2.21%, a 0.24% decline from 2018.nullWorld Inflation Rate 1960-2024 - Macrotrendswww.macrotrends.net › global-metrics › countries › WLD › inflation-rate-...null