As reported by the Ifo Institute and the Swiss Economic Policy Institute on Tuesday (14/01/2025), scientists expect the average global inflation rate to be 3.9% in 2025. In 2026 and 2027, they forecast a slight decline to 3.5%. – Inflation expectations remain above the inflation targets of many central banks – explained Ifo expert Niklas Potrafke. He believes that large cuts in interest rates are unlikely.
The European Central Bank aims to achieve an inflation rate of 2.0%. and sees price stability at this level.
Western Europe in the best situation
Projected global inflation rates vary significantly by region. For example, scientists expect inflation in Western Europe to reach 2.1 percent this year. (2.0 percent in 2026). However, for Eastern Europe, the institutes forecast 7.5 percent this year. and 6.4 percent next time.
The figures for North and East Africa and South America are even higher, at over 20% and in some cases over 30%. However, expectations have also risen in North America, where economists now expect 2.6%. including 2.8 percent next year.
A total of 1,398 experts from 125 countries participated in the quarterly survey conducted between December 4 and 18, 2024. (AFP/du)
The article comes from the website Deutsche Welle