According to inflation statistics, 2022 has been a painful year for financial markets following a worldwide increase in inflation that began in mid-2021, just after the COVID-19 pandemic started fizzling out. Just as captured in our definition of inflation, the increased inflation across the world has resulted in the decline in purchasing power of most currencies including the US dollar.
The current inflation rate can be attributed to various trends including the pandemic-related economic disruption. Two of the most prevalent factors include monetary and fiscal stimulus programs throughout 2020 and 2021 and the Russian invasion of Ukraine which caused disruptions to the global supply chain and energy markets.
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Before the COVID-19 recession, consumer spending on goods moved in tandem with spending on services. After the recession consumers shifted towards goods and away from services, especially in the United States of America. The shift has since caused stress on supply chains and the supply of goods can’t meet demand resulting in major price increases. Supply chain stresses have caused increased prices for commodities and transportation, which are cost inputs for finished goods
In countries where the food and beverages industries constitute a large part of the economy, the rising prices caused by inflation have forced low-income consumers to reduce spending on other goods, thereby slowing economic growth.
In this post, we will look at inflation statistics worldwide to shed more light on how inflation affects world economies.
Top inflation statistics – Editor’s pick
- Consumer prices have reached an all-time high, soaring by 6.2% from the previous year.
- The annual inflation rate in the United States has increased to 8.3% in 2022.
- At the end of 2021, Venezuela had the highest inflation rate in the world, at 1588%.
- Global inflation is forecast to decline to 6.5% in 2023 and 4.1% by 2024.
- The world economy is projected to grow by only 3.1% in 2022 and 2023.
Global inflation statistics
1. The US inflation rate in October was at 7.5%
According to data from YCharts, the US inflation rate was 7.5% at the end of October 2022. This was down 0.45% from September’s rate of 8.20%.
2. As of August 2022, the US inflation rate in the US was 8.3%
According to data on Statista, The inflation rate in the United States of America had risen to 8.3%. This means that the purchasing power of the US dollar has weakened.
3. Inflation in the US hit an all-time high of 9.06% in June 2022
The inflation rate in the US hit a 40-years all-time high of 8.5% in March 2022.
4. In the UK, inflation hit a high of 11.1% in October 2022
The UK inflation rate in October 2022 was 11.1%, which is the highest in 40 years. The inflation rate has been on an upward trajectory throughout the year and the main factors leading to an increased inflation rate in the UK are soaring energy and housing costs.
5. The world inflation rate was forecast to reach 8.8% by end of 2022
The International Monetary Fund (IMF) had projected that global inflation would rise from a 4.7% in 2021 to 8.8% in 2022. And by August the inflation rate in a majority of developed and emerging countries was averaging at about that figure.
6. The Consumer Prices Index including owner occupiers’ housing costs (CPIH) in the UK rose to 9.6% in the past year to October 2022
According to the Office for National Statistics in the UK, the Consumer Prices Index including owner occupiers’ housing costs (CPIH) in the United Kingdom rose by 9.6% in the 12 months to October 2022. In October the CPIH rose by 1.6% from 8.8% in September.
The UK Consumer Price Index (CPI) in October was 126.20% with the most important components being:
- Transport – 14%
- Housing & Utilities – 14%
- Recreation & Culture – 13%
- Food & Non-alcoholic Beverages – 12%
- Restaurants & Hotels – 11%
- Miscellaneous Goods & Services – 9%
- Furnishings, Household Equipment & Routine Maintenance of the House -8%
- Clothing & Footwear – 6%
- Alcoholic Drinks, Tobacco & Narcotics -5%
- Education – 3%
- Communication – 3%
- Health – 2%
7. Argentina currently has the highest inflation rate among the G20
According to data published on Trading Economics, Argentina sits at the bottom of G20 countries. It has an inflation rate of about 88%. Turkey is the second last with an inflation rate of 85.51%.
8. China has the lowest inflation rates among the G20
China has the lowest inflation rate. It has an inflation rate of about 2.1%. It is closely followed by Saudi Arabia and Switzerland both with an inflation rate of 3% and Japan with an inflation rate of 3.7%.
9. Russia has an inflation rate of about 12.6%
Russia has an inflation rate of about 12.6% and is expected to continue rising following the strain exerted on the economy by the ongoing invasion of Ukraine.
10. Inflation in the EU reached 11.5% in October 2022, the highest since 1997
According to a ‘Harmonized index of consumer prices (HICP) inflation rate of the European Union from January 1997 to October 2022’ report compiled by Statista, the inflation rate in the European Union reached 11.5%, the highest it has surged to since 1997.
11. Estonia has the highest inflation rate in the EU
In October, Estonia had the highest inflation rate among EU member states. Its inflation stood at 22.5%.
12. France has the lowest inflation in the EU
In October 2022, France had the lowest inflation rate in the European Union. It had an inflation rate of 7.1%.
13. In 2021, Venezuela had the highest inflation rate of about 1588%
According to an ‘Inflation rate in Latin America and the Caribbean in 2021, by country’ report compiled by Statista, Venezuela had an inflation rate of about 1588% in 2021 making it the worst-hit nation.
The inflation in Venezuela has however reduced to about 156% as of October 2022 according to data from trading economics.
14. As of November 2022, Zimbabwe had the highest inflation rate of 255%
The current inflation rate in Zimbabwe is about 255% down from 269% in October.
15. In 2021, the average inflation rate in Latin America and the Caribbean was 9.79%
While Venezuela had an inflation of 1588% the average inflation rate in Latin America and the Caribbean averaged at about 9.79%.
Suriname was the country with the second-highest inflation rate in the region and the inflation rate stood at about 59.12%.
16. In 2021, Samoa had one of the lowest inflation rates
In 2021, Samoa ranked 1st with a negative inflation rate of about -3.02% compared to the previous year.
17. The world economy is projected to grow by only 3.1% in 2022 and 2023
According to the United Nations ‘World Economic Situation and Prospects: June 2022 Briefing, No. 161’ the world economy is forecast to grow by about 3.1% in 2022 and 2023.
This is against the backdrop of the war in Ukraine which has upset the fragile global economic recovery, causing an overwhelming humanitarian crisis in Europe, pushing up commodity and food prices, slowing global economic growth and aggravating inflationary pressures worldwide.
18. The US consumer price Index is forecast to reach 325.6 by 2027
According to data from the International Monetary Fund the US consumer Price Index (CPI) is projected to grow to about 325.6% by 2027 up from 258.84 in 2020.
19. In October 2022, the monthly percentage change in CPI for urban consumers was 0.4%
In October 2022, the monthly percentage change in the CPI for urban consumers in the US was 0.4% compared to September.
Central bank interest rates
20. The US has witnessed 4 consecutive rate hikes of 0.75%
The US FED is determined to bring down inflation in the US and as a result, there have been four consecutive rate hikes of 0.75%, the fastest rate increase that has been witnessed in the country in 35 years.
21. Russia has the highest interest rate of about 14.3%
According to a survey conducted by Statista in July 2022, Russia had one of the highest interest rates at 14.3%.
22. China has the lowest interest rate
According to the same survey, China was found to have the lowest central bank interest rate of about 2.5%. The interest rate is forecast to get below 2% by 2027
23. Germany had the lowest annual interest rate in 2020
According to the Financial Statistics dataset of predominantly monthly statistics, and associated statistical methodological information for the 36 OECD member countries and some other selected countries published on the OCED webpage, Germany had the lowest interest rate of -0.37% per annum in 2021. Luxemburg followed closely with -0.36%.
The Netherlands had an annual interest rate of -0.33% and Switzerland’s interest rate was -0.23.
24. As of October 2022, Japan had the lowest interest rate of 0.25%
In October 2022, the monthly interest rate in Japan was 0.25%, the lowest interest rate of the month. Switzerland came second with 1.125%, and Germany was third with 2.19%.
25. Hungary had the highest interest rates among OECD countries with an interest rate of 10.25%
In October, the monthly interest rate in Hungary was about 10.25% making it the country with the highest interest rate among the OECD countries.
We hope that the above inflation statistics provide a comprehensive overview of the inflation trends around the world.
Going by the statistics, 2022 has been a year where global economies have been suffering from the pressure of some of the highest inflation rates in years.