International Inflation Rates

Global and Regional Overview

Globally, the drivers of inflation are shifting, even if the headline numbers fall. According to the World Bank, oil-price shocks remain the single largest contributor to inflation variability (over 38 %) and global demand shocks account for roughly 28 %. A recent Federal Reserve-Bank “Liberty Street” note adds that in the post-pandemic period supply shocks dominated early (particularly when supply-chains were disrupted), but subsequently strong demand has become a more prominent driver of inflation. Meanwhile, institutional watchers such as the Organisation for Economic Co‑operation and Development (OECD) note that inflation in G20 economies is projected at about 3.8 % in 2025 and ~3.2 % in 2026 — signalling a gradual disinflation but also a slower glide down.

In advanced economies, inflation is gradually returning to more familiar levels (around 2–3 %), helped by monetary tightening, easing supply constraints and falling commodity-price momentum. But in many emerging markets the story is different: currency weakness, imported inflation (fuel/food), elevated wage pressures and structural vulnerabilities keep inflation comparatively sticky. Moreover, geopolitical fragmentation (trade tensions, “friend-shoring”, supply-chain rerouting) is raising the risk of sudden cost shocks in some regions.

Regional Perspective

North America and western Europe benefit from easing commodity pressures and tighter central-bank policy, but still face high services inflation and labour-market tightness.

Emerging Asia (ex: parts of Southeast Asia) are seeing disinflation in goods but upward pressure in wages and housing.

Latin America, Africa and some Middle-Eastern/frontier economies continue to be hit by currency depreciation, food/fuel cost shocks and weaker fiscal buffers.

Small open economies / island-states are particularly exposed to import price shocks, energy/fuel costs and exchange-rate swings — meaning even modest inflation rates can translate into big purchasing-power losses for residents and expats alike.

What this means for cost of living and wages is important: even if nominal wage growth remains decent, if inflation eats into it the real (inflation-adjusted) purchasing power falls, particularly for those relocating from lower-inflation jurisdictions. Cost of living remains elevated in many high-price jurisdictions, so even modest inflation can worsen the squeeze.

The Top 50 Most Expensive Country/States: Inflation and Cost-of-Living Overview

Monaco Inflation: 2.2 % (Sept 2025): Practically dressed as a luxury economy, Monaco has the highest cost-of-living level in the world. A low inflation rate is a plus, but the baseline cost is already very high (housing, services, exclusive goods). For a relocating salary-earner, purchasing power will depend heavily on what wage you secure: even modest inflation won’t help much if your housing or living costs are enormous. Conclusion: Real-income maintenance is possible, but you’ll need a very generous salary to enjoy anything beyond basic living.

China-Hong Kong Inflation: 1.1 % (Aug 2025): A surprisingly low inflation number for such a high-cost place, likely reflecting housing cost lags or statistical effects. Yet cost of living remains very high (rent, imported goods, services). For someone moving there on a UK salary, if the salary is not significantly higher you may find that everyday living (housing, schooling, leisure) eats up a large portion. Even 1.1% inflation means things are getting costlier year-on-year. Conclusion: Purchasing-power erosion is modest, but given the high cost-base the risk is of living standards falling if nominal wages don’t keep up.

Singapore Inflation: 0.7 % (Sept 2025): One of the lowest inflation rates on the list, which is relatively good news. However, Singapore is an expensive city-state (housing, private schooling, imported goods). If relocating here, a stable salary that keeps pace with Singapore’s wage growth is key. Low inflation is helpful, but doesn’t mask the fact that cost of living is high. Conclusion: Among the better prospects in this list for real-income maintenance — but only if salary is aligned to local cost levels.

Switzerland – Inflation: 0.2 % (Sept 2025): An ultra-low inflation number for one of the world’s most expensive cost-of-living economies (Zurich, Geneva). A strong currency (Swiss franc) helps control imported inflation. For someone moving in, this is favourable: assuming you are paid in a currency that keeps pace or you’re earning a local-market salary, your purchasing power is likely to be preserved or even improve. Conclusion: High cost base still, but inflation risk is minimal in the near term — strong pick for real‐income stability if salary is competitive.

Cayman Islands – Inflation: 1.9 % (June 2025): As a small island economy with high living costs (housing, imported food/ goods), even a modest inflation rate can have significant impact. A low headline inflation is beneficial, but living standards are expensive. For a mover, the salary must cover premium cost items (housing, schooling, health) — even 1.9% inflation gradually erodes value if cost base is steep. Conclusion: Real-income preservation plausible but only with a premium salary to offset high cost base.

Norway – Inflation: 3.6 % (Sept 2025): Norway, while wealthy and with high wages, has a correspondingly high cost of living (housing, food, services). A 3.6% inflation rate is moderate but above many advanced-economy targets. For someone relocating, unless salary growth is aligned (and often wages are very high in Norway), purchasing power can slip if cost growth outpaces your salary rise. Conclusion: Acceptable but caution: high cost base + decent inflation = risk of real-income erosion unless salary is strong.

Denmark – Inflation: 2.3 % (Sept 2025): Denmark offers a high-quality environment (social services, health, work-life balance) but also high living costs (especially housing). An inflation rate of 2.3% is moderate. Salary-earners relocating should check local tax burdens, net salary, and whether their nominal wage growth will exceed 2.3%. If yes, purchasing power can be maintained. If not, cost of living increases will bite. Conclusion: Fairly stable environment — but high cost of living makes salary alignment essential.

Hawaii (U.S. State) – U.S. inflation: 3% (Sept 2025): Hawaii as part of the U.S. inherits the national inflation figure (3%) but has a cost of living significantly above the U.S. average (housing, imported goods, energy). For someone moving from e.g. mainland UK or Europe, unless the salary is significantly above local U.S. norms you may find real purchasing power squeezed. Conclusion: Moderate inflation but very high cost base → real-income risk unless compensated.

Turks & Caicos Islands – Inflation data: (2020) 2.1 %: The inflation data is somewhat dated, but the broad reality is that the cost of living is very high (import-dependence, tourism economy). Even low inflation now means paying a premium for goods and services. Anyone relocating here must count on high costs of imported food, housing and utilities. Salary must be aligned to that premium. Conclusion: Premium-cost location → low inflation helps but doesn’t mitigate the high cost baseline.

Bahamas – Inflation: 0.3 % (May 2025): One of the lowest inflation rates on the list — ostensibly good news. Yet Bahamas has a high cost of living (imported goods, tourism-driven economy, housing for expats). The low inflation implies less erosion of salary purchasing power — but the salary itself must be large enough to deal with high baseline costs. Conclusion: Strong for salary stability, but still high cost of living means you need a premium to live comfortably.

Jersey (Channel Islands) – Inflation: 0 % (June 2025): Fascinatingly zero inflation — assumes cost base is stable or statistical anomalies. Jersey is nonetheless an expensive place to live (proximity to UK, tax-advantages, high service costs). Your salary must at least match local equivalents; zero inflation means your costs aren’t rising, but they remain high in absolute terms. Conclusion: Potentially good purchasing-power maintenance — but only if salary is local-market or above.

St Vincent & Grenadines – Inflation: 0 % (Dec 2024): Zero reported inflation but again a high‐cost island environment (imports, tourism). Salary offers may be smaller in nominal terms compared to major global cities. Relocators must assess if their salary covers premium living costs; inflation may not erode value, but living costs remain high relative to typical incomes. Conclusion: Cheap in inflation terms, but cost base still elevated in absolute sense.

Israel – Inflation: 2.5 % (Sept 2025): Israel’s inflation rate is quite moderate. Living costs (especially housing in Tel Aviv/Jerusalem) are high. Wages are decent yet purchasing-power risk remains if salary growth lags cost growth. For a mover, a salary matched to local market expectations (often higher than smaller economies) will be needed. Conclusion: Reasonable environment — moderate inflation, but high cost base means salary alignment is crucial.

New Zealand – Inflation: 3.0 % (Sept 2025): New Zealand is expensive in cost of living (housing, utilities, imported goods) and 3.0% inflation is moderate. Yet relative to many advanced economies it is elevated. If relocating from the UK or elsewhere, unless you gain a salary increase commensurate with cost-base differences, your real income may slip. Conclusion: Fair but moving costs and housing premium make salary growth key.

Bermuda – Inflation: 1.8 % (April 2025): Low inflation which is positive. Bermuda is one of the world’s highest cost jurisdictions (housing, insurance, imported goods). For someone relocating, a salary aligned with local expectations (high) is absolutely essential; low inflation helps preserve value, but baseline living cost remains onerous. Conclusion: Good inflation environment but very high cost base.

California (U.S. State) – U.S. inflation: 3% (Sept 2025): California’s cost of living is extremely high (San Francisco, Silicon Valley, Los Angeles) — higher than U.S. average. Inflation is at national level (3%) but local housing cost pressures remain acute. A mover must secure a significantly higher salary than the U.S. average to maintain purchasing power; inflation will slowly eat away if salary growth doesn’t keep up. Conclusion: High-risk of purchasing power erosion unless salary is premium.

Sao Tome & Principe – Inflation: 11.8 % (Aug 2025): A very high inflation rate for this island economy — meaning rapid erosion of purchasing power. Combined with high import costs and limited local production, cost of living is under pressure. For someone relocating: Unless salary is indexed to inflation or adjusted frequently, real-income loss will be significant. Conclusion: High inflation + challenging cost base → real purchasing-power risk is substantial.

U.S. Virgin Islands – Inflation: 4.0 % (May 2023): Inflation moderate but cost of living high (import-heavy economy, tourism). Wage norms may be lower than many mainland U.S. states. For a mover from the UK: The nominal salary must reflect local premium; real-income risk exists if the salary is not sufficiently high. Conclusion: Moderate inflation and high cost base; salary alignment essential.

Montserrat – Inflation data: (2020) 1.5 %: Inflation data is dated; cost of living however is high for a small island. Low inflation is positive but baseline costs are still steep relative to many places. Real purchasing power depends heavily on the nominal wage. Conclusion: Stable inflation but high cost base remains a challenge.

Grenada – Inflation: 0 % (Dec 2024): Zero inflation suggests cost stability, but cost of living is high (imports, housing, islands). Salary demands will be accordingly high. Conclusion: Good inflation backdrop, but cost base remains elevated.

St Kitts & Nevis – Inflation: 0 % (Dec 2024): Inflation is stable, but the cost of living is high for imported economy. Salary must reflect that. Conclusion: Stable inflation, high living cost.

Greenland – Inflation: 0 % (Jan 2025): Low inflation appears favourable, but isolation, logistical costs and extreme environment mean cost of living is high for many goods and services. For a mover: Must check how salary compares to local standards, logistics cost effects, heating etc. Conclusion: Good inflation number, but still expensive in absolute cost terms.

Liechtenstein – Inflation: 0.2 % (Sept 2025): Very low inflation in a wealthy, high-cost European micro-state. A favourable combination for someone relocating on a well-paid salary. But baseline cost of housing and services is already high. Conclusion: Among the better prospects for real-income stability (assuming salary matching local high standards).

Barbados – Inflation: 1.2 % (Aug 2025): Reasonably low inflation. Cost of living though is elevated by tourism-economy effects and imported goods. For a mover: Real-income preservation likely easier than in high-inflation places, but absolute cost base matters. Conclusion: Relatively favourable for relocation (given correct salary).

Iceland – Inflation: 4.1 % (Sept 2025): Higher inflation than many advanced economies; cost of living very high (geography, housing, imported goods). For a mover from UK: Unless salary rise exceeds 4.1 % (or is significantly higher than UK nominal), purchasing power may fall. Conclusion: Real-income risk unless salary is generous.

Massachusetts (U.S. State) – U.S. inflation: 3% (Sept 2025): A U.S. state with a very high cost base (Boston, tech-clusters). Inflation at national level 3% but local housing cost escalations can out-pace that. For a mover: Salary must reflect local premium; otherwise real cost of living will bite. Conclusion: Moderate inflation, high cost base → salary must be solid.

Antigua & Barbuda – Inflation: 0 % (Dec 2024): Zero inflation reported; cost of living high in island context. Salary expectations accordingly higher. Conclusion: Stable inflation, elite cost base.

Gabon – Inflation: 0.7 % (Dec 2024): Surprisingly low inflation but cost of living high for expats : import-dependence, infrastructure costs. Additionally, salary levels may be lower than in top global markets — so purchasing-power risk may come from differential in nominal wages rather than inflation per se. Conclusion: Low inflation helps; still cost base and wage considerations matter.

Alaska (U.S.) – U.S. inflation: 3% (Sept 2025): Alaska’s cost of living is substantially higher than U.S. average (imported goods, shipping, housing). Inflation modest but cost base elevated. For a mover: Need higher salary than national average to maintain real living standard. Conclusion: Salary alignment essential.

Guam – Inflation: 0 % (March 2025): Zero inflation in data, but island cost base likely high (imports, shipping). Salary levels may differ significantly from U.S. mainland. For a mover: Need to factor in local cost-of-living premium despite the zero inflation. Conclusion: Inflation stable but cost base high.

Taiwan – Inflation: 1.3 % (Sept 2025): Relatively low inflation and cost of living lower than many Western capitals — but still high in regional context, especially for housing in Taipei. For a mover: Could be favourable if salary is decent; moderate cost base compared to extremes. Conclusion: Good relative prospect for purchasing-power preservation.

Solomon Islands – Inflation: 5.5 % (Aug 2025): Relatively high inflation for a small island economy; cost of living high due to logistics, imported goods. Wage growth may not keep up. For a mover: Real-income risk is significant; salary must be adjusted for both high inflation and high cost base. Conclusion: High risk of purchasing power fall.

British Virgin Islands – Inflation: 0 % (June 2025): Zero inflation but high cost of living (island/import/travel-driven). Salary must reflect that. Conclusion: Inflation benign; cost base high.

Saint Lucia – Inflation: 0 % (June 2025): Same pattern: zero inflation, high cost base; pay must reflect local cost of living. Conclusion: Inflation stable but cost base elevated.

Turkmenistan – Inflation: 5.5 % (Dec 2024): One of the few “top” expensive places with above-modest inflation. Cost of living data may be opaque; currency/regime risks bigger. For a mover: Complex environment; need to account for inflation plus potential currency/devaluation risk. Conclusion: Elevated risk of purchasing-power loss.

Guernsey – Inflation: 0 % (June 2025): Zero inflation but high cost environment (Channel Islands). Salary must support high cost of living. Conclusion: Inflation fine; cost base still high.

Anguilla – Inflation not available: Has a high cost of living as a Caribbean island. Indirect: assume as the cost of living is high, the salary must be premium. Conclusion: High cost base, check salary carefully.

France – Inflation: 1.2 % (Sept 2025): Relatively low inflation in a major advanced economy. Cost of living in Paris and other prime cities is high, however. For a mover: If salary is local-market or better, purchasing power likely stable; if salary is low/remote, risk of being squeezed. Conclusion: One of the better advanced-economy options in this list.

New York State – U.S. inflation: 3% (Sept 2025): New York cost of living is among the highest in the U.S. (NYC especially). Inflation modest but housing/rent pressures significant. For a mover: Salary must reflect local premium. Otherwise cost of living may outpace wage growth. Conclusion: Moderate inflation; high risk of real-income erosion unless salary is strong.

Finland – Inflation: 0.5 % (Sept 2025): Very low inflation and a high-quality living environment. Cost of living is high in absolute terms (Nordic housing, services) but inflation risk is small. For a mover: Good prospect for real-income preservation if salary is aligned. Conclusion: Good option.

Australia – Inflation: 2.1 % (June 2025): Australia has moderate inflation and cost of living (especially in Sydney/Melbourne) is high. Housing is expensive, utilities and services also. For a mover: Unless salary increase is commensurate, real-income falls are possible. Conclusion: Decent inflation backdrop; cost base high means salary matters.

Luxembourg – Inflation: 2.7 % (Sept 2025): Inflation moderate and cost of living very high (housing, taxation, services). But wages in Luxembourg tend to be correspondingly high. For a mover: If you secure local-market wages, purchasing power likely maintained; if not, cost base will bite. Conclusion: Balanced but expensive.

Côte d’Ivoire – Inflation: –0.2 % (Sept 2025): Negative inflation (deflation) appears favourable at first glance. But cost of living may still be high in certain urban pockets, and salary levels may be low relative to advanced economy norms. For a mover: Real purchasing power might improve in nominal terms, but relative living standard versus home country might still fall due to salary and service levels. Conclusion: Potentially interesting but check local salary and cost logic.

South Korea – Inflation: 2.1 % (Sept 2025): Moderate inflation, cost of living high in Seoul and major cities. Housing and schooling can be expensive. For a mover: If salary is local-market or above, real-income preservation likely; if you bring a lower international salary, cost base may strain. Conclusion: Good medium option among expensive places.

Oregon (U.S. State) – U.S. inflation ~3%: Oregon’s cost of living above U.S. average (housing in Portland/outside). Inflation modest but housing cost trends matter. For a mover: Salary must reflect local premium; otherwise real cost of living may erode value. Conclusion: Moderate risk depending on salary.

Isle of Man – Inflation: 0 % (Sept 2025): Zero inflation but cost of living high (UK-adjacent). Salary must support high cost base. Conclusion: Inflation stable; cost very high.

Washington (State) – U.S. inflation: 3% (Sept 2025): Washington has high cost of living (Seattle area, tech salaries). Inflation moderate but housing and service costs high. For a mover: Salary must reflect local norms. Conclusion: Moderate inflation, high cost base.

Rhode Island (U.S. State) – U.S. inflation: 3% (Sept 2025): Cost of living above U.S. average; inflation modest. Salary alignment again key. Conclusion: Similar to other U.S. states on list: fine inflation, high cost base.

Liberia – Inflation: 4.7 % (Sept 2025): A notable inclusion in “top 50 most expensive country-states” list though its cost-base may be lower than many of the advanced-economy entries; inflation at 4.7% is above many advanced economies. Cost of imported goods may be high; local infrastructure and services weaker. For a mover: Salary may be lower; combined with 4.7 % inflation means risk of purchasing-power loss unless salary is indexed/adjusted. Conclusion: Real-income risk is meaningful.

Austria – Inflation: 4.0 % (Sept 2025): One of the higher inflation rates among advanced economies in the list. Cost of living (Vienna etc) high though generally somewhat lower than e.g. London. Inflation at 4.0 % means real cost of living is rising noticeably. For a mover: Unless salary growth outpaces 4.0 % annually (or you negotiate accordingly), real purchasing power will decline. Conclusion: Elevated inflation risk among advanced‐economy entries; salary must keep up.

Implications for salary purchase-power for movers

What emerges clearly is this: when you are relocating to one of these high-cost jurisdictions you must think not only of the nominal salary but how that salary stacks up after inflation and against the cost-of-living baseline in that location. A salary that seems generous in one country may translate into much less real lifestyle in a high-cost/high-inflation location than in a moderate-cost/low-inflation one.

Here are some key take-aways:

Low inflation ≠ low cost of living. Many of the places on the list (Switzerland, Monaco, Liechtenstein, etc) have very low inflation but extremely high absolute living costs. The real magic is getting a salary that exceeds both cost of living and inflation by a decent margin.

High cost base + moderate inflation = more risk. Locations like Austria, Iceland, Norway, New Zealand show moderate inflation but very high baseline costs. If your salary doesn’t grow faster than cost base + inflation, you will lose purchasing power.

Island and small-economy risk premium. Many of the island and micro-states (Cayman, Bermuda, Turks & Caicos, Caribbean states) have high cost of imported goods, small local economies, and are often subject to volatile cost shifts. Even if inflation is low now, the cost base is risky and compensation must reflect that.

Emerging-economy and frontier inflation risk. Some entries (Sao Tome & Principe, Liberia, Solomon Islands) show higher inflation or weaker structural buffers; a salary in such places must build in cushion against inflation + currency/ import shocks.

Domestic salary level matters. Even in low-inflation/high-cost places, if you are earning a salary far below the local standard or failing to negotiate premium compensation, you may find your real purchasing power declines—or your lifestyle is constrained.

Indexation and contract adjustments. For expats, ensuring that salary and benefits are regularly adjusted for inflation or cost-of-living is vital. A fixed salary in a high-cost region may lead to real income loss over time even if nominal inflation is modest.

Housing and local services often dominate cost pressure. In many of these expensive jurisdictions, housing (rent or property), schooling (if international), insurance and utilities are major cost items which often rise faster than headline inflation. So salary negotiations should focus on those line items, not just the headline inflation number.

Conclusion

In short: the global inflation storm which peaked post-pandemic is subsiding, but the cost-of-living storm is far from over for many. The top-50 most expensive jurisdictions that you listed illustrate the key point: even if inflation is moderate or low, the very high cost bases in many of these places mean purchasing-power risk remains, especially for those relocating.

If you’re planning to move to one of these places you’d be wise to treat salary negotiations as not just about “big number” but about real-income” after inflation and cost of living: Is the salary enough to cover high rent/housing, imported goods, insurance, schooling etc? Does the salary grow (or is it indexed) to match inflation and cost-of-living increases?

In our opinion, the safest bets from the inflation-perspective of your list are jurisdictions with low inflation and moderate-to-high wages that reflect cost bases (Switzerland, Liechtenstein, Singapore, Finland). But bear in mind “moderate cost base” is relative: even these places are expensive by global standards. Conversely, the highest risk (from a purchasing-power angle) come from high-inflation/high-cost combination places (e.g., Iceland, Norway, Sao Tome & Principe, Solomon Islands) or those where salaries may not match cost base.

Ultimately, the key for any mover is: nominal salary + inflation + cost base = real purchasing power. Ignore any one of those elements at your peril.