List of Countries by Inflation Rate:

Inflation is a key economic indicator that measures the general increase in prices of goods and services within an economy over a specific period of time. The inflation rate, expressed as a percentage, reflects the rate at which the purchasing power of money is eroded.

It is an important factor for policymakers, economists, and individuals as it impacts various economic decisions, including monetary policy, investment choices, and consumption patterns. The list of countries by inflation rate provides insights into the relative price movements across different economies.

What is Inflation?

Inflation occurs when the supply of money in an economy grows faster than the supply of goods and services. As a result, the demand for goods and services increases relative to their availability, leading to rising prices. Inflation can be caused by various factors, including excess money supply, increased production costs, demand-pull effects, and supply disruptions.

What is the Inflation Rate?

The inflation rate is the percentage change in the average price level of a basket of goods and services over a specified period. It is typically calculated on an annual basis. A positive inflation rate indicates rising prices, while negative inflation (deflation) indicates a decrease in prices. Mild inflation is generally considered normal and can signify a healthy economy, but hyperinflation (extremely high inflation) can have severe economic and social consequences.

The inflation rate is calculated using the Consumer Price Index (CPI), which measures the average change in prices of a representative basket of goods and services consumed by households. The formula to calculate the inflation rate is as follows:

Inflation Rate = ((CPI in Current Year – CPI in Previous Year) / CPI in Previous Year) * 100

How Does Inflation Affect Your Savings?

Inflation has a significant impact on your savings, and understanding this impact is crucial for making informed financial decisions. Here’s how inflation affects your savings:

• Reduced Purchasing Power: As the general price level of goods and services increases due to inflation, the purchasing power of your money decreases. This means that the same amount of money will buy you fewer goods and services than it could have bought in the past. In other words, your money becomes less valuable over time.
• Erosion of Real Value: Inflation erodes the real value of your savings. Let’s say you have $10,000 in a savings account earning a fixed interest rate of 2%. If the inflation rate is 3%, the real value of your savings is actually decreasing by 1% (3% inflation – 2% interest). Over time, this erosion can accumulate, significantly impacting your ability to meet future financial goals.
• Effect on Investments: Savings are often held in various forms, including savings accounts, certificates of deposit (CDs), and money market accounts. These typically offer lower returns compared to investments such as stocks or real estate. When inflation outpaces the interest rates offered by these low-risk savings vehicles, your savings could lose value in real terms.
• Impact on Retirement Planning: If you’re saving for retirement, inflation can have a profound impact on your retirement income needs. Over a long time horizon, even relatively low inflation rates can substantially increase the cost of living. Your retirement savings need to account for this higher cost of living to maintain your desired lifestyle in retirement.
• Savings Allocation: Inflation affects different types of savings differently. For instance, cash savings (like money in a bank account) are particularly vulnerable to inflation’s erosion. On the other hand, assets like stocks, real estate, and commodities have historically shown the potential to outpace inflation, thus providing a hedge against its effects.

Considerations for Combating Inflation’s Impact on Savings:

1. Invest Wisely: To counter the negative impact of inflation, consider investing in assets that historically have the potential to outpace inflation, such as stocks, real estate, and inflation-protected bonds (TIPS).
2. Diversification: A diversified investment portfolio can help spread risk and capture potential returns that outpace inflation. Different asset classes may react differently to inflationary pressures.
3. Long-Term View: While inflation can erode short-term purchasing power, it’s important to consider your long-term financial goals. Investments with growth potential can help preserve your savings’ real value over time.
4. Inflation-Adjusted Accounts: Some retirement accounts and investments offer inflation-adjusted features. For example, Social Security benefits are adjusted annually for inflation to help retirees maintain their purchasing power.
5. Regular Review: Regularly review and adjust your financial plan to account for changes in inflation rates. Rebalancing your portfolio and adjusting your savings goals can help you stay on track.

Inflation Rate By Countries 2023

#	Country	Inflation Rate (2022)	Percentage Change (vs. 2021)
1	Zimbabwe	284.94%	189.13%
2	Venezuela	210%	-86.78%
3	Sudan	154.91%	-56.86%
4	Turkey	73.13%	273.11%
5	Argentina	72.37%	49.49%
6	Sri Lanka	48.19%	708.56%
7	Suriname	47.56%	-19.55%
8	Yemen	43.85%	-4.05%
9	Iran	39.99%	-0.35%
10	Ethiopia	33.64%	25.62%
11	Moldova	28.48%	458.43%
12	Ghana	27.18%	172.34%
13	Haiti	26.82%	68.26%
14	Sierra Leone	25.91%	118.28%
15	Angola	21.69%	-15.83%
16	Estonia	21%	367.71%
17	Ukraine	20.55%	119.55%
18	Nigeria	18.91%	11.56%
19	Malawi	18.45%	97.54%
20	Lithuania	17.61%	280.35%
21	South Sudan	17.60%	-41.78%
22	Turkmenistan	17.50%	17.06%
23	Burundi	17.34%	108.66%
24	Belarus	16.51%	74.71%
25	Latvia	16.45%	407.72%
26	Czech Republic	16.34%	325.52%
27	Myanmar	16.16%	343.96%
28	São Tomé and Príncipe	15.05%	84.89%
29	Laos	15%	300%
30	Mongolia	14.83%	108.58%
31	Burkina Faso	14.20%	267.88%
32	Kazakhstan	13.97%	74.63%
33	Hungary	13.88%	170.57%
34	Poland	13.81%	169.73%
35	Russia	13.77%	105.83%
36	Romania	13.34%	164.16%
37	Montenegro	12.76%	431.67%
38	Guinea	12.72%	0.95%
39	Zambia	12.53%	-43.10%
40	Bulgaria	12.40%	336.62%
41	Azerbaijan	12.24%	83.78%
42	Palau	12.20%	2611.11%
43	Pakistan	12.15%	36.52%
44	Kosovo	12%	262.54%
45	Netherlands	11.98%	323.32%
46	Slovakia	11.94%	323.40%
47	Georgia	11.65%	21.73%
48	Chile	11.63%	157.30%
49	Serbia	11.46%	180.20%
50	Comoros	11.44%	-6455.56%
51	The Gambia	11.31%	53.46%
52	Mozambique	11.26%	97.89%
53	Botswana	11.16%	66.82%
54	Uzbekistan	11.15%	2.76%
55	Republic of Macedonia	10.61%	228.48%
56	Bosnia and Herzegovina	10.50%	425%
57	Mauritius	10.18%	151.98%
58	Nicaragua	9.94%	102.03%
59	Barbados	9.90%	223.53%
60	Madagascar	9.80%	68.38%
61	Croatia	9.76%	273.95%
62	Colombia	9.75%	178.57%
63	Algeria	9.74%	34.72%
64	Rwanda	9.50%	1058.54%
65	Paraguay	9.48%	97.91%
66	Belgium	9.47%	194.10%
67	Brazil	9.41%	13.37%
68	Greece	9.17%	1508.77%
69	United Kingdom	9.12%	252.12%
70	Uruguay	9.11%	17.55%
71	Dominican Republic	9.02%	9.47%
72	Jamaica	9%	52.54%
73	Somalia	9%	94.81%
74	Slovenia	8.92%	367.02%
75	Costa Rica	8.87%	412.72%
76	Spain	8.83%	185.76%
77	Italy	8.74%	350.52%
78	Honduras	8.62%	92.41%
79	Armenia	8.54%	18.61%
80	Antigua and Barbuda	8.52%	422.70%
81	Egypt	8.50%	88.89%
82	Germany	8.46%	163.55%
83	Democratic Republic of the Congo	8.44%	-6.12%
84	Iceland	8.43%	89.01%
85	Ireland	8.40%	248.55%
86	Luxembourg	8.39%	141.79%
87	Tajikistan	8.25%	-8.03%
88	Lesotho	8.12%	34.21%
89	Tunisia	8.08%	41.51%
90	United States of America	8.05%	71.64%
91	Mexico	8.03%	41.12%
92	Mali	8%	109.97%
93	Cyprus	7.99%	255.11%
94	Portugal	7.90%	740.43%
95	Austria	7.73%	181.09%
96	Bhutan	7.66%	-39.30%
97	Guyana	7.59%	128.61%
98	Senegal	7.50%	244.04%
99	Peru	7.46%	87.44%
100	Kenya	7.38%	20.79%
101	Eritrea	7.35%	10.69%
102	El Salvador	7.29%	110.09%
103	Sweden	7.24%	173.21%
104	Denmark	7.20%	271.13%
105	Mauritania	7.10%	88.33%
106	East Timor	7%	85.19%
107	Liberia	6.91%	-11.64%
108	Canada	6.90%	102.94%
109	India	6.89%	25.05%
110	San Marino	6.88%	230.77%
111	South Africa	6.74%	47.81%
112	Belize	6.60%	103.70%
113	Papua New Guinea	6.60%	46.99%
114	Djibouti	6.59%	458.47%
115	Finland	6.55%	216.43%
116	Central African Republic	6.53%	53.29%
117	Australia	6.50%	130.50%
118	Iraq	6.47%	7.12%
119	Uganda	6.44%	191.40%
120	Marshall Islands	6.40%	145.21%
121	Namibia	6.40%	76.80%
122	Guatemala	6.37%	49.53%
123	Thailand	6.33%	414.63%
124	New Zealand	6.28%	59.39%
125	Nepal	6.26%	73.89%
126	Albania	6.24%	205.88%
127	Morocco	6.20%	342.86%
128	Bangladesh	6.15%	10.61%
129	Aruba	6.04%	716.22%
130	Malta	5.87%	726.76%
131	France	5.81%	182.04%
132	The Bahamas	5.66%	94.50%
133	Togo	5.59%	29.40%
134	Singapore	5.54%	139.83%
135	Guinea-Bissau	5.52%	68.81%
136	Ivory Coast	5.52%	32.69%
137	Libya	5.52%	99.28%
138	Philippines	5.32%	35.37%
139	Andorra	5.29%	211.18%
140	Dominica	5.28%	236.31%
141	United Arab Emirates	5.22%	2800%
142	Cambodia	5.21%	78.42%
143	Equatorial Guinea	5.14%	-5811.11%
144	Trinidad and Tobago	5.05%	236.67%
145	Benin	5%	194.12%
146	Chad	4.94%	-741.56%
147	Eswatini	4.87%	30.91%
148	Fiji	4.75%	2868.75%
149	Norway	4.70%	35.06%
150	Indonesia	4.63%	196.79%
151	Cameroon	4.58%	102.65%
152	Vanuatu	4.58%	95.73%
153	Israel	4.52%	203.36%
154	Grenada	4.51%	269.67%
155	Niger	4.51%	17.45%
156	Qatar	4.48%	99.11%
157	Puerto Rico	4.39%	82.16%
158	Kuwait	4.32%	27.06%
159	Maldives	4.27%	1933.33%
160	Seychelles	4.11%	-57.93%
161	Tanzania	3.96%	7.32%
162	Panama	3.94%	141.72%
163	Jordan	3.80%	187.88%
164	Vietnam	3.76%	105.46%
165	Solomon Islands	3.74%	-3500%
166	Bahrain	3.50%	-673.77%
167	Gabon	3.50%	224.07%
168	Republic of the Congo	3.50%	77.66%
169	Malaysia	3.23%	30.24%
170	Ecuador	3.21%	2369.23%
171	Bolivia	3.19%	331.08%
172	Oman	3.11%	100.65%
173	Taiwan	3.10%	57.36%
174	Switzerland	3.06%	427.59%
175	Saudi Arabia	2.70%	-11.76%
176	Macau	2.51%	8266.67%
177	Brunei	2.50%	44.51%
178	People’s Republic of China	2.17%	155.29%
179	Nauru	2%	66.67%
180	Japan	1.99%	-929.17%
181	Hong Kong	1.90%	21.02%