Global inflation is set to slightly increase in the coming years, according to a new survey by the IFO Institute. The global inflation rate is set to reach 4.0% in 2025, followed by 3.9% in 2026 and 3.8% in 2028. These estimates come from a quarterly survey that included insights from 1,489 economic experts across 131 countries.

In 2024, Western Europe is predicted to have the lowest inflation rates. The average for the region is set at 2.1%, with specific country rates at 2.4% in Germany, 2.9% in Austria, and just 0.9% in Switzerland. Southern Europe’s rate is expected to be higher at 3.4%, while Eastern Europe is forecasted to see 7.4%, which remains above many central banks’ targets.

In North America, inflation expectations have increased compared to the previous quarter. The region is projected to reach 3.2% in 2025—up 0.6 percentage points from earlier forecasts. Similar rates are expected to continue through 2026 and 2028, remaining steady at around 3.2% to 3.3%.

Central America and the Caribbean are forecasted to see moderate inflation, averaging 3.7%. However, inflation is expected to be much higher in South America and across many African regions, with some areas seeing rates above 20%.

In Africa, inflation varies significantly by region. Southern Africa is forecasted to have a relatively lower rate of 4.7%, while other parts of the continent expect much higher rates: Western Africa (9.4%), Middle Africa (15.2%), Eastern Africa (28.4%), and Northern Africa (36.1%).

Asia also shows a wide range in inflation expectations. Eastern Asia (3.8%) and South-Eastern Asia (3.2%) are close to central bank targets. However, other sub-regions face higher projections—Western Asia (7.2%), Southern Asia (8.7%), and Central Asia (10.7%).