A gradual decline in global inflation is expected
The German Institute for Economic Research (Ifo) and the Swiss Institute for Economic Policy (KOF) published the December results of the quarterly “Economists’ Survey”.
Consequently, the global inflation rate will fall to 7.1 percent in the new year, then to 5.8 percent next year and 4.5 percent in 2026.
Inflation expectations for this year were 5.4 percent for Western Europe, 5.2 percent for North America and 5.3 percent for Southeast Asia, well below the world average.
In contrast, inflation expectations for 2023 were above the global average at 23 percent for South Asia, 25 percent for South America, 32 percent for North Africa, and 35 percent for East Africa. .
‘INFLATION CONTINUES AT A HIGH LEVEL’
Ifo researcher Niklas Potrafke noted that inflation expectations at the start of the year were encouraging, “because experts say inflation rates are slightly lower than in the previous quarter. However, inflation remains at a very high level.
Potrafke said that the ECB’s 50 basis point rate hikes on three main policy rates in December also contributed to lower inflation expectations in Europe.
In December 2022, 1,537 economists from 133 countries participated in the survey. (AA)