Global inflation rate to dip in '24, still tops central banks' targets

This 5 per cent rate, representing the median of average expected inflation rates at the country level, highlights considerable regional variations, with some areas like Africa anticipating dramatically higher inflation compared to the rest of the world. Despite the short-term expectations showing a downward trend, experts foresee high inflation rates persisting globally in the upcoming years. For 2025, the average expected inflation rate is projected at 4.4 per cent, indicating a further decline compared to 2024, as per the survey.

Looking at the long-term scenario up to 2027, inflation expectations are still high at 3.6 per cent, though they have decreased from the previous quarter's projection of 4.4 per cent. The survey reveals stark regional disparities in inflation expectations. For 2024, Western Europe is expected to have the lowest inflation rates at 3.1 per cent, with Central and North America and Northern Europe having similar expectations ranging between 3.2 per cent and 3.8 per cent. In sharp contrast, regions like North Africa and South America anticipate significantly higher short-term inflation rates, at 45 per cent and 29 per cent respectively.

Despite these variations, the survey suggests a general decline in inflation expectations for most regions compared to the previous quarter. By 2027, experts anticipate inflation rates in Western Europe, North America, and Northern Europe to almost align with the central banks' target of 2 per cent. However, regions like East Africa and North Africa are expected to continue experiencing high long-term inflation rates, projected at 41 per cent and 25 per cent, respectively.

ALCHEMPro News Desk (DP)