According to international economic experts, the currently very high inflation will decrease again in the coming years. Global inflation is expected to reach 6.2 percent this year but will fall to 5.2 percent in 2025, according to the quarterly survey published Thursday by the Munich Ifo Institute and the Institute for Swiss Economic Policy IWP. The rate is expected to drop further in 2026: to 4.5 percent.
“Inflation expectations are still high, but have fallen significantly compared to the previous quarter,” said Ifo researcher Niklas Potrafke about the survey of more than 1,500 experts from 128 countries. In Western Europe (4.6 percent) and North America (4.1 percent), inflation expectations for the coming year are well below the global average. They decreased by 0.3 and 0.4 percentage points compared to the previous quarter’s survey. For 2026, the experts surveyed expect inflation of 2.4 percent for Western Europe and 2.7 percent for North America.
This year, 7.3 percent is expected in Austria, 5.7 percent in Germany, 5.2 percent in Luxembourg and 2.6 percent in Switzerland. In contrast, experts in regions such as North Africa (55 percent) or East Africa (36 percent) expect inflation to be well above average, according to the Ifo Institute.
The battle of the central banks
In Western industrialized countries, central banks are combating inflation with sharp interest rate increases. For example, the European Central Bank (ECB) ended its long-standing zero interest rate policy last year and raised its policy rate to 4.50 percent.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
