Inflation is an economic indicator that represents the general rise in the prices of goods and services. The International Monetary Fund (IMF) projects that global inflation will be 4.3% in 2025. For emerging markets and developing economies, inflation is expected to be 5.9% and 2%, respectively. Countries like Argentina, Venezuela, and Sudan are projected to face some of the highest inflation rates in 2025. On the other hand, countries such as Switzerland, France, and China have consistently maintained the lowest inflation rates.
What is the Consumer Price Index (CPI)?
The Consumer Price Index (CPI) is used to measure the average price level of a typical basket of consumer goods and services in a given time period. It helps measure how much the prices of these items change over time. The inflation rate is calculated by looking at the percentage change in the average CPI of a country. This metric gives a clear picture of how much the prices of the selected consumer goods and services change over time.
Top 10 Countries With the Highest Inflation Rates
The table below highlights the top ten countries with the projected high inflation rates globally in 2025.
| Rank | Country Name | Inflation Rate (%) |
|---|---|---|
| 1 | Sudan | 118.9 |
| 2 | South Sudan, Republic of | 79.3 |
| 3 | Venezuela | 71.7 |
| 4 | Argentina | 62.7 |
| 5 | Türkiye, Republic of | 33 |
| 6 | Iran | 29.5 |
| 7 | Nigeria | 25 |
| 8 | Burundi | 25 |
| 9 | Lao P.D.R. | 23.7 |
| 10 | Zimbabwe | 23.6 |
The data is sourced from the International Monetary Fund.
Projected Inflation Sudan and South Sudan
Sudan is projected to face the highest inflation, which has surged to 118% in 2025. The country has a long history of inflation and debt challenges. Ongoing conflicts, currency devaluation, and a severe fiscal crisis heavily influence Sudan’s economic situation. The situation worsened after the secession of South Sudan in 2011, which caused a sharp drop in oil revenues in the country. According to the IMF, Sudan’s inflation situation has worsened in recent years. The country has experienced 77% inflation rates in 2023, around 200% in 2024, and is projected to face 118% in 2025.
Unlike Sudan, South Sudan is also projected to face a high inflation rate in 2025. Despite stabilization efforts, inflation in South Sudan is set to remain high at 79% in 2025. Since gaining independence in 2011, South Sudan has faced persistent economic challenges and mismanagement. The country faced several periods of hyperinflation that have made basic goods and services unaffordable for a large population of the country.
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Venezuela
Venezuela is projected to face a 71% inflation rate in 2025. The country has experienced one of the worst hyperinflation crises in modern history, as its inflation rates surpassed 1,000,000% in the late 2010s. Political mismanagement, declining oil revenues, and widespread corruption are some of the main causes of high inflation in Venezuela. Although inflation in Venezuela lowered to 59% in 2024, it is projected to rise again to 71% in 2025.
Argentina
According to the International Monetary Fund, inflation in Argentina is projected to reach 62% in 2025, compared to the 229% recorded in 2024. The country is facing persistent budget deficits. The government frequently prints more money to cover budget deficits, which leads to an increase in the money supply and a decrease in the value of the peso. Additionally, Argentina faced a persistent cycle of debt crises over the past century, including the largest sovereign debt default in 2001. These issues, along with poor economic management, have led to extreme inflation in the country.
Turkey
Turkey is projected to face about 33% inflation rates in 2025. The major causes of persistantly high inflation rates in Turkey are large government budget deficits, aweak Turkish lira, and fluctuations in global oil prices. Additionally, the country has experienced the highest inflation in its history in the mid-1990s, reaching over 100%.
Several countries, including Iran, Nigeria, and Burundi, are projected to face high inflation rates in 2025.The high inflation in such countries is expected to put additional pressure on consumer purchasing power by diminishing their standard of living.
Top 10 Countries With the Lowest Inflation Rates
The table below highlights the ten countries with the lowest inflation rates globally in 2025.
| Rank | Country Name | Inflation Rate (%) |
|---|---|---|
| 1 | Brunei Darussalam | 1 |
| 2 | Switzerland | 1 |
| 3 | Thailand | 1.2 |
| 4 | Saint Lucia | 1.3 |
| 5 | Qatar | 1.4 |
| 6 | Oman | 1.5 |
| 7 | Djibouti | 1.5 |
| 8 | Comoros | 1.5 |
| 9 | Bahamas, The | 1.6 |
| 10 | France | 1.6 |
Source: International Monetary Fund
IMF projects that several countries to experience remarkably low inflation rates in 2025. Switzerland and Brunei Darussalam will experience a very low inflation rate of just 1%. Other countries with similarly low rates include Thailand, Oman, Qatar, and France, among others.
Conclusion
The countries expected to experience the highest inflation are primarily located in Africa. This continent is home to some of the world’s poorest nations. High inflation rates in countries like Sudan, South Sudan, Nigeria, Burundi, Lao P.D.R., and Zimbabwe will make it increasingly difficult for people to afford basic necessities of life.
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