Economists expect high inflation

Economists around the world are also expecting high inflation rates this year.

The German Institute for Economic Research (Ifo) and the Swiss Institute for Economic Policy (KOF) published the April results of the quarterly “Economists’ Survey”.

As a result, global inflation is expected to be 7% this year, 5.9% next year and 5% in 2025.

Also, depending on the region, economists predict large variations in inflation rates.

CONTINUES HIGH INFLATION EXPECTATIONS

Inflation expectations for this year are 5.3 percent for Western Europe, 5 percent for North America and 5.1 percent for Southeast Asia, well below the world average. On the other hand, inflation expectations for 2023 are above the world average with 22.5 percent for South Asia, 46.1 percent for South America, 32.7 percent for North Africa and 29 .9 percent for East Africa.

Ifo researcher Niklas Potrafke said inflation expectations for next year and 2025 have risen slightly, saying: “Inflation will remain at a very high level.”

Potrafke noted that the ECB’s rate hikes also contributed to lower inflation expectations in Europe.

1,572 economists from 136 countries participated in the March survey. (AA)