Global inflation forecast to reach four per cent in 2025, German think tank says


MUNICH (dpa): Global inflation is expected to remain high in 2025, according to a survey by a leading German think tank, which predicts consumer prices will rise by an average of 4 per cent around the globe.

The Munich-based ifo Institute on Monday released the findings of its quarterly Economic Expert Survey, conducted among experts worldwide.

"Expectations on both short-run and long-run inflation rates remain relatively unchanged at the global level," ifo noted in a press release.

While remaining unchanged compared to the previous quarter, expectations for 2025 inflation vary widely from region to region, the survey shows, with the lowest rate forecast for Western Europe at 1.8 per cent.

In North America, Northern Europe, and Oceania, inflation rates are expected to be slightly higher at 2.7 per cent to 3.1 per cent.

"Notably, expectations in North America remain elevated compared to the end of the previous year, reflecting still ongoing inflationary pressures," it said.

The steepest rise in prices is expected to hit East Africa and North Africa, where inflation is forecast to reach 22.9 per cent and 40.8 per cent, respectively, in 2025.

Ifo researcher Philipp Heil pointed to trade disputes and tariffs as the main drivers behind the heightened expectations.

In 2026, experts expect global inflation to slow to 3.9 per cent, with prices expected to rise by 3.7 per cent in 2028.

The survey was conducted between June 17 and July 1, with 1,340 economic experts from 121 countries questioned. - dpa

 

 

 

 

 

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