International Inflation Rates

In 2025, global inflation continues the downward trend observed in 2024, with rates declining from the peaks observed in 2022 and 2023. This moderation was largely attributed to the resolution of supply chain disruptions and the impact of restrictive monetary policies implemented by central banks worldwide. The International Monetary Fund (IMF) reported that global inflation decreased from 6.7% in 2023 to 5.8% in 2024, with projections indicating a further decline to 4.3% in 2025.

Despite this overall improvement, regional disparities persisted. Advanced economies experienced a more pronounced reduction in inflation rates, while emerging markets continued to grapple with higher levels. For instance, the eurozone saw inflation rates aligning closer to the European Central Bank's (ECB) target of 2% by late 2025. In contrast, countries like Turkey continued to face significant inflationary pressures, with rates remaining elevated throughout 2024.

In the United States, inflation showed signs of easing, allowing the Federal Reserve to consider further interest rate cuts in 2025, contingent upon continued progress in inflation reduction. Similarly, the United Kingdom experienced a gradual decline in inflation, with rates decreasing from 1.7% in September 2024 to 2.6% in December 2024. In both the USA and the UK inflation has ticked up to 3% in January and 2.8% in February 2025.

China's inflation remained notably low, at -0.7% in February 2025. This persistent low inflation raised concerns about deflationary pressures, prompting discussions about the need for policy interventions to stimulate domestic demand.

In Japan, inflation rates increased to 3.7% in February 2025, influenced by rising import costs due to a weaker yen and optimistic wage growth projections. The Bank of Japan indicated a potential upward revision of its price forecasts, reflecting heightened attention to inflation risks.

Emerging economies such as Brazil and India continued to face higher inflation rates compared to their developed counterparts. Brazil's inflation rose from 4.42% in September 2024 to 5.06 in February 2025, while India's inflation, is showing a declining trend, at 3.61% in February 2025.

Looking ahead to 2025, forecasts suggest a continuation of the disinflationary trend globally. The IMF projects global inflation to decline to 4.3% in 2025, with advanced economies expected to reach target rates around 2%. However, potential risks such as escalating geopolitical tensions and trade barriers could disrupt this trajectory, necessitating vigilant policy measures to sustain economic stability.

In conclusion, while 2024 witnessed a significant moderation in global inflation, the persistence of regional disparities and potential external shocks underscore the importance of tailored policy responses to address specific economic challenges in 2025.

In summary the latest inflation rate trends in the largest economies:

• Australia: 2.4% in December 2024, down from 2.8% in September 2024, and 3.8% in June 2024.
• Brazil: 5.06% in February 2025, up from 4.56% in January 2025, and 4.83% in December 2024.
• Canada: 2.6% in February 2025, up from 1.9% in January 2025, and 1.8% in December 2024.
• China: -0.7 in February 2025, down from 0.5% in January 2025, and 0.1% in December 2024.
• France: 0.8% in March 2025 the same as February 2025, down from 1.7% in January 2025.
• Germany: 2.2% in March 2025, down from 2.3% in February and January 2025.
• Hong Kong: 1.4% in February 2025, down from 2% in January 2025, the same as 1.4% in December 2024.
• India: 3.61% in February 2025, down from 4.31 in January 2025, and 5.22 in December 2024.
• Indonesia: -0.09 in February 2025, down from 0.76% in January 2025, and 1.57% in December 2024.
• Italy: 2% in March 2025, up from 1.6% in February 2025, and 1.5% in January 2025.
• Japan: 3.7% in February 2025, down from 4% in January 2025, and 3.6% in December 2024.
• Saudi Arabia: 2% in February 2025, the same as 2% in January 2025, and up from 1.9% in December 2024.
• Singapore: 0.9% in February 2025, down from 1.2% in January 2025, and 1.5% in December 2024.
• South Africa: 3.2% in February 2025, the same as 3.2% in January 2025, up from 3% in December 2024.
• South Korea: 2.1% in March 2025, up from 2% in February 2025, down from 2.2% in January 2025.
• Spain: 2.3% in March 2025, down from 3% in February 2025, and 2.9% in January 2025.
• Taiwan: 1.58% in February 2025, down from 2.66% in January 2025, and 2.1% in December 2024.
• Turkey: 38.1% in March 2025, down from 39.05% in February 2025 and 42.12% in January 2025.
• United Arab Emirates: 3.15% in February 2025, the same as 3.15% in January 2025, up from 2.89% in December 2024.
• United Kingdom: 2.8% in February 2025, down from 3% in January 2025, and up from 2.5% in December 2024.
• United States: 2.8% in February 2025, down from 3% in January 2025, up from 2.9% in December 2024.