Key Takeaways
Global inflation averaged 4.2% in 2025, with many countries showing resilience in the face of historic U.S. tariffs.
In the U.S., inflation declined from 3% in 2024 to 2.7% in 2025.
Inflation was highest in Venezuela, at 269.9% for the year.
Global inflation fell moderately to 4.2% in 2025, in spite of U.S. tariffs hitting century highs.
For 2026, the IMF projects inflation to decline even further to 3.7% in 2026, even as tariff impacts continue to materialize. This is being driven by weak price growth in China and below-target inflation in many European countries.
This graphic shows inflation by country in 2025, based on data from the IMF’s latest World Economic Outlook.
A Closer Look at Inflation by Country
Below, we show the inflation rates of 191 countries and territories worldwide in 2025:
Venezuela faces the highest inflation on the planet, at 269.9% in 2025, and this is set to jump to 682% in 2026.
Over 2025, the Venezuelan bolivar depreciated 82.7% against the dollar as U.S. sanctions and warship deployment targeting alleged drug traffickers contributed to inflationary pressures. Now, with Maduro’s ouster, the outlook for the economy remains uncertain.
For the U.S., inflation stood at 2.7% and is forecast to fall to 2.4% in 2026. Overall, tariffs were estimated to increase inflation by 0.5 percentage points in 2025, far lower than initially feared.
China, on the other hand, saw inflation sit at 0.0%, one of the lowest rates globally. Deflationary pressures, from excess production to a weak labor market, significantly impacted the economic climate. In 2026, inflation is set to rise to 0.8% fueled by economic stimulus measures that aim to boost domestic consumption.
Meanwhile, several European economies saw moderate inflation in 2025 amid low energy and import prices. In France, inflation stood at 1.1%, while Italy and Germany saw rates of 1.7% and 2.1%, respectively.
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