The rate of inflation has a big impact on your financial situation, affecting mortgage payments, savings and the cost of your weekly shopping.
How the price of goods and services we regularly spend money on changes over time is used by governments and businesses to take the temperature of a nation’s economy. It’s generally accepted that low, predictable growth is best for everyone.
The global inflation rate is currently around 3.6%, according to the International Monetary Fund. These are the countries with the highest inflation rates in the world:
Inflation rate of 282,972.80%
Venezuela has by far the highest inflation rate in the world. The Latin American country’s annual inflation in July was at 282,972.80 per cent, down from 445, 482 per cent in June. The country entered hyperinflation territory in 2016 and continues to face economic, as well as political, unrest. Venezuela’s socialist government, headed by President Nicolas Maduro, managed to bring down hyperinflation by curbing borrowing for businesses and applying stricter reserve requirements on banks.
Inflation rate of 175.66%
Inflation in Zimbabwe was near perfect in July last year, is 4.29%. Since October, it has exponentially been increasing, reaching alarming 175.66% in June. One of the main reasons for this is that Zimbabwe had been struggling with its currency. The country has switched to the US dollar in 2015, returning to the local currency in June 2019, which followed the high leap in inflation growth.
3. South Sudan
Inflation rate of 56.66%
The country declared independence from Sudan in 2011, but has since suffered from unrest and fighting between troops loyal to President Salva Kiir and his former deputy-turned-rival Riek Machar. The country continues to face a deep economic crisis following several years of conflict, according to the IMF.
4. North Korea
Inflation rate of 55.00%
Even though the North Korean economy struggles within hyperinflation, inflation rates in the country have been steadily dropping down, compared to March 2018 when inflation was at 140%. North Korean all-time high rate of 4376% was recorded in August 2010.
Inflation rate of 54.40%
Argentina’s Minister of the Treasury Hernan Lacunza asked the International Monetary Fund to help the country restructure its debt payments on a $56 billion bailout loan agreed in 2018 as it aims to calm market volatility.
Inflation rate of 52.59%
Annual inflation in Sudan hit 52.59 per cent in July, up from 47.78 per cent in June, according to state news agency SUNA. Mass protests earlier this year, triggered by a worsening economic crisis and limits on cash withdrawals, have exacerbated hyperinflation. The protests eventually led to the Sudanese military ousting long-time president Omar al-Bashir. The country recently transferred power to a civilian-led government, with Abdallah Hamdok as its new premier, after decades of authoritarian rule.
Inflation rate of 42%
In August 2019, Iran’s average annual inflation hit 42.2 per cent, up from 40.4 per cent in July, according to the Statistical Center of Iran. The Iranian government in August announced its plans to cut four zeros from its currency and change its name from the rial to the toman, in an attempt to reset its ailing economy. The rial’s value had plunged in recent years, particularly since the US re-imposed sanctions on the country last year.
Inflation rate of 23.30%
The West African nation is one of the poorest in the world. In 2018, Liberia’s economy grew by about 1.2 percent, a significant slowdown from an expansion rate of 2.5 percent in 2017, according to the World Bank. The country is otherwise known for its mining industry, particularly iron ore and gold production.
Inflation rate of 18%
The inflation rate in Haiti rose past 18 per cent in July, with 60 per cent of Haitians living below the poverty line. In a July-dated report to the United Nations Security Council on Haiti, UN Secretary-General Antonio Guterres said that the political situation, food shortages, and a weakening economy had created a “potentially explosive” situation in the Caribbean country. The Haitian parliament recently narrowly approved a new prime minister amid protests caused by a shortage of fuel, local Haitian news reported.
10) Sierra Leone
Inflation rate of 17.46%
As one of the poorest countries in the world, the West African nation recorded an annual inflation rate of 17.46 per cent as of March. After concluding its review mission to Sierra Leone, the IMF recommended that the country step up its structural reform efforts to manage fiscal risks, ensure greater accountability, and diversify the economy.