Key insights and market outlook
The global average inflation rate is projected to reach 4.2% in 2025, despite the United States implementing its highest trade tariffs in a century. Venezuela tops the list with an inflation rate of 269.9%, followed by South Sudan at 97.5% and Zimbabwe at 89.0%. The International Monetary Fund (IMF) projects global inflation to further decline to 3.7% in 2026, driven by weak price growth in China and below-target inflation in many European countries.
The global average inflation rate is expected to reach 4.2% in 2025, showing resilience despite significant economic pressures, including the highest trade tariffs imposed by the United States in over a century. While the U.S. has managed to reduce its inflation from 3% in 2024 to 2.7% in 2025, other countries are facing severe inflationary challenges.
The International Monetary Fund (IMF) projects that global inflation will moderate further to 3.7% in 2026. This forecast is supported by expectations of weak price growth in China and inflation remaining below target in many European countries. The moderate decline in global inflation despite heightened trade tensions reflects the complex interplay of global economic factors.
Global Inflation Projection for 2025
IMF Inflation Forecast for 2026