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.
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.
