According to a recent survey by Germany’s ifo Institute, global inflation is expected to reach 4.
0% in 2025, slightly easing to 3.9% in 2026, and further decreasing to 3.8% by 2028.
The survey highlights significant regional variations in inflation expectations. In Western Europe, the forecasted inflation rate for 2025 is the lowest at 2.
1%, with countries like Germany, Austria, and Switzerland anticipating rates of 2.4%, 2.9%, and 0.9%, respectively. Conversely, Southern Europe and Eastern Europe are projected to experience higher inflation rates of 3.4% and 7.4%, respectively, remaining above central banks’ targets.
In North America, inflation expectations have risen, with experts predicting a rate of 3.
2% in 2025, an increase of 0.6 percentage points from the previous quarter’s forecast. Similar levels are anticipated for the subsequent years, with inflation projected at 3.2% in 2026 and 3.3% in 2028.
These elevated inflation forecasts suggest that global monetary policies will likely remain constrained, leaving little room for significant interest rate cuts in the near term.
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The quarterly survey, conducted between December 4 and December 18, 2024, gathered responses from 1,398 economists across 125 countries, providing a comprehensive overview of global inflation expectations.
