According to economic experts, high inflation will remain a problem worldwide in the coming years. In 2025, the global average inflation is expected to reach 3.9 percent, according to the quarterly survey by the Ifo Institute and the Swiss Economic Policy Institute published on Tuesday. “Inflation expectations remain above the inflation targets of many central banks,” said Ifo researcher Niklas Potrafke.
According to the Ifo researcher, larger interest rate cuts are therefore unlikely given these inflation expectations. Many central banks aim for an inflation rate of two percent. The 1,398 experts from 125 countries surveyed in December also expect only a slight decline in the longer term. They expect global inflation to reach 3.5 percent in 2026. This value should remain at this value in 2028.
Austrian inflation is expected at 2.5 percent this year
The experts expect an average inflation rate of 2.4 percent for Germany, 2.5 percent for Austria and 1.2 percent for Switzerland. “Inflation expectations have increased, especially in North America,” the report said. Experts there expect inflation of 2.6 percent this year. That is 0.2 percentage points more than in the survey from the previous quarter. Inflation in North America is expected to reach 2.8 percent in 2026 and even 2.9 percent in 2028.
One reason for this is likely the tariff threats from newly elected US President Donald Trump. Higher tariffs are likely to make imports more expensive in the world’s largest economy. Many experts therefore assume that the US Federal Reserve will cut its key interest rate only once this year.
“The regions with particularly high inflation expectations include South America and large parts of Africa,” the Ifo Institute said. Inflation rates of more than 20 percent are expected there.
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.
