Economists expect global inflation to remain high until next three years

(MENAFN) A recent survey conducted by the German Institute for Economic Research (DIW) and the Swiss Economic Institute (KOF) suggests that global inflation rates will remain persistently high through 2028. Released on Tuesday, the survey indicates that the average worldwide inflation rate is projected to reach 3.9 percent in 2025.

Economists anticipate a modest decline in global inflation, with rates falling to 3.5 percent by 2026. However, they caution that inflation expectations are unlikely to dip further in the long term, remaining steady at 3.5 percent up to 2028.

The survey also highlights significant regional disparities in inflation rates. In 2024, inflation was reported to be below the global average in several regions: 2.1 percent in Western Europe, 2.6 percent in North America, and 2.9 percent in Southeast Asia.

For 2025, inflation forecasts are much higher in other parts of the world, far exceeding the global average. Predictions include 7.4 percent in South Asia, 33.6 percent in South America, 37.2 percent in North Africa, and 27.6 percent in East Africa. These figures underscore stark contrasts in economic conditions across regions.

The survey gathered insights from 1,398 economists across 125 countries, offering a comprehensive outlook on inflationary trends and their potential impact on the global economy over the next several years.

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