This Economic Commentary provides an overview of several frictions and the channels through which they affect economic welfare under elevated trend inflation above 2 percent. These frictions, associated with financial transactions, price and wage stickiness, and cognitive limitations, suggest that inflation imposes significant costs on society. Higher inflation may lead to a steeper Phillips curve, a situation which increases the volatility of inflation and interest rates.

Since early 2021, inflation has consistently exceeded the Federal Reserve’s target of 2 percent. Using a combination of data, economic theory, and narrative information around historical events, we empirically assess what has caused persistently elevated inflation. Our estimates suggest that both aggregate demand and supply factors, including supply chain disruptions, have contributed significantly to high inflation.

In the third quarter of 2024, half of Norwegian companies had problems with increasing purchase prices as a result of rising inflation seen around the world. Moreover, more than 40 percent faced problems due to an unstable economic framework. On the other hand, only 10 percent had issues with lack of credits or financing. As a consequence of the COVID-19 pandemic, as well as the Russian War in Ukraine that started in February 2022, inflation has been surging worldwide. For more information about inflation in the Nordic countries, please visit our dedicated topic page.

IBISWorld examines the potentially significant effects of a global recession on domestic industries, businesses and consumers.

In case prices for goods and services go up significantly in 2023, over ** percent of consumers around the world said they would shop less in general and cut down on spending as a response. A fifth of survey respondents said they would look for and purchase cheaper and better value products. Less than **** percent of those surveyed worldwide believed inflation would be unlikely to impact their habits. What does inflation look like? The world entered a new inflation crisis in 2021, driven by a confluence of factors including the COVID-19 pandemic which restricted global supply chains, and the Russian-Ukraine war which exacerbated food and energy shortages. In 2022, global inflation hit **** percent, the highest annual increase in decades. The rate of inflation is estimated to remain high in the near future, at around *** percent in 2023 and *** percent in 2024. Inflation dominated the list of most important problems facing the world according to a survey conducted in October 2023 – leading ahead of poverty and social inequality, crime and violence, and unemployment. In a global consumer trends survey, the majority of respondents said that inflation impacted them completely or a lot – for instance, ***** in ** respondents in the United States admitted they had been seriously impacted. Inflation’s impact on the holidays The end-of-year holiday season is typically regarded as a period of increased retail spending, driven by a series of major shopping events such as Black Friday and Cyber Monday, as well as the public holidays Thanksgiving and Christmas. However, inflation has put a damper on the holiday cheer, with consumers expressing their intentions to cut back spending amid the cost-of-living crisis. In 2022, a significant share of consumers in Europe said they planned to cut at least some related expenses. In fact, ** percent of respondents in the United Kingdom planned to cut all expenses related to Black Friday and Christmas.

We analyze the heterogeneous effects of postpandemic inflation and disinflation by inspecting inflation and wage growth experienced across quintiles of household income and wage distributions. We find that after inflation peaked in June 2022, households and workers in the bottom 40 percent of the income and wage distributions have consistently experienced both higher inflation and higher wage growth when compared to the middle 40 and top 20 percent of these distributions. Comparing the cumulated growth of both variables, we observe that the bottom and middle 40 percent reach the end of 2024 with 4.5 percentage points more of cumulated wage increase than inflation since January 2019, while the top 20 percent ended the same period with close to 3.5 percentage points of increase in their cumulated purchasing power. Replication materials for this Economic Commentary may be found at github.com/avdluduvice/LuduviceTruss-WilliamsWalker_InfWageGrowth .

Inflation Rate in the United States increased to 3 percent in September from 2.90 percent in August of 2025. This dataset provides - United States Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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This dataset provides a comprehensive historical record of inflation rates worldwide, covering the period from 1960 to the present. It includes inflation data at the national level for multiple countries and territories, making it a valuable resource for economic analysis, financial forecasting, and macroeconomic research.

Data Source: https://datos.bancomundial.org/indicador/FP.CPI.TOTL.ZG?end=2023&start=1960&view=chart

Key Features:

✅ Global Coverage – Inflation rates for countries across all continents.

✅ Long-Term Data – Over 60 years of historical records, ideal for trend analysis.

✅ Regional Classification – Data categorized by region, sub-region, and intermediate region for in-depth geographic analysis.

✅ Standardized Indicators – Based on CPI (Consumer Price Index) inflation rates from reputable sources.

Potential Use Cases:

📊 Economic Research – Analyze inflation trends and economic cycles.

📈 Financial Forecasting – Predict future inflation and its impact on global markets.

🌍 Policy & Development Studies – Examine regional disparities and economic policies.

📚 Machine Learning Applications – Train predictive models using historical inflation trends.

This dataset is an essential tool for economists, data scientists, and financial analysts looking to explore global inflation patterns and their implications on economic stability.

Inflation is generally defined as the continued increase in the average prices of goods and services in a given region. Following the extremely high global inflation experienced in the 1980s and 1990s, global inflation has been relatively stable since the turn of the millennium, usually hovering between three and five percent per year. There was a sharp increase in 2008 due to the global financial crisis now known as the Great Recession, but inflation was fairly stable throughout the 2010s, before the current inflation crisis began in 2021. Recent years Despite the economic impact of the coronavirus pandemic, the global inflation rate fell to 3.26 percent in the pandemic's first year, before rising to 4.66 percent in 2021. This increase came as the impact of supply chain delays began to take more of an effect on consumer prices, before the Russia-Ukraine war exacerbated this further. A series of compounding issues such as rising energy and food prices, fiscal instability in the wake of the pandemic, and consumer insecurity have created a new global recession, and global inflation in 2024 is estimated to have reached 5.76 percent. This is the highest annual increase in inflation since 1996. Venezuela Venezuela is the country with the highest individual inflation rate in the world, forecast at around 200 percent in 2022. While this is figure is over 100 times larger than the global average in most years, it actually marks a decrease in Venezuela's inflation rate, which had peaked at over 65,000 percent in 2018. Between 2016 and 2021, Venezuela experienced hyperinflation due to the government's excessive spending and printing of money in an attempt to curve its already-high inflation rate, and the wave of migrants that left the country resulted in one of the largest refugee crises in recent years. In addition to its economic problems, political instability and foreign sanctions pose further long-term problems for Venezuela. While hyperinflation may be coming to an end, it remains to be seen how much of an impact this will have on the economy, how living standards will change, and how many refugees may return in the coming years.

Although international shipping costs are generally not included in import price indices, importers can pass changes in shipping costs through to consumers in a manner that affects aggregate price growth. We estimate this pass-through and find that a 15 percent increase in shipping costs leads to a 0.10 percentage point increase in core inflation after one year. Shipping costs have recently stabilized after years of decline, suggesting import costs may contribute modestly to core inflation in 2017.

Inflation rates for the lowest income households were almost always higher than for the highest income households between 2005 and 2021. The biggest difference was seen in December 2008, when the lowest income households experienced inflation rates 0.8 percent greater than the highest income households. In 2021, the difference in the inflation rate experienced by the lowest income households and the highest income households fell considerably, reaching -0.52 percent in July 2021, meaning that inflation was 0.52 percent higher for the highest earners versus the lowest earners.

The Consumer Price Index The consumer price index (CPI) measures the rate of inflation on a basket of goods as a way to document the general inflationary experience of all urban consumers. While this measure of inflation can give us insights into the general price increases of consumer goods, it may not reflect the actual inflation experienced by any given household. Consumers from different income brackets actually behave quite differently when it comes to consumption preferences and their willingness to pay.

Inflation in 2022 2022 was an exceptional year for inflation worldwide due to a multitude of factors relating to the COVID-19 pandemic and the Russian invasion of Ukraine. The inflation rate in the United States reached a high of 9.1 percent during the summer, with consumers experiencing record fuel prices, and increased concerns over the state of the economy. Despite the 2021 figures indicating that inflation has been higher for the highest earners, the pandemic saw U.S. billionaires increase their wealth by 57 percent between March 2020 and March 2022.

Core consumer prices in the United States increased 3 percent in September of 2025 over the same month in the previous year. This dataset provides - United States Core Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Context

Happiness and well-being are essential indicators of societal progress, often influenced by economic conditions such as GDP and inflation. This dataset combines data from the World Happiness Index (WHI) and inflation metrics to explore the relationship between economic stability and happiness levels across 148 countries from 2015 to 2023. By analyzing key economic indicators alongside social well-being factors, this dataset provides insights into global prosperity trends.

Content

This dataset is provided in CSV format and includes 16 columns, covering both happiness-related features and economic indicators such as GDP per capita, inflation rates, and corruption perception. The main columns include:

Happiness Score & Rank (World Happiness Index ranking per country) Economic Indicators (GDP per capita, inflation metrics) Social Factors (Freedom, Social Support, Generosity) Geographical Information (Country & Continent)

Acknowledgements

The dataset is created using publicly available data from World Happiness Report, Gallup World Poll, and the World Bank. It has been structured for research, machine learning, and policy analysis purposes.

Inspiration

How do economic factors like inflation, GDP, and corruption affect happiness? Can we predict a country's happiness score based on economic conditions? This dataset allows you to analyze these relationships and build models to predict well-being trends worldwide.

The U.S. dollar has appreciated more than 8.5 percent since May 2021, raising questions about potential effects on domestic inflation. If imports are billed in foreign currencies, then a strong dollar could reduce import prices and therefore domestic inflation. However, U.S. imports are almost entirely invoiced in U.S. dollars, dampening this effect. We find that the recent appreciation in the U.S. dollar has a negligible effect on domestic inflation as measured by the core price index for personal consumption expenditures.

Graph and download economic data for Inflation, consumer prices for the United States (FPCPITOTLZGUSA) from 1960 to 2024 about consumer, CPI, inflation, price index, indexes, price, and USA.

Food inflation remains higher than measures of overall inflation, and labor markets have been tight. We find that processed food products have driven recent increases in grocery prices, and we argue that labor market tightness affects the prices of these labor-intensive products in particular through increases in production and distribution costs. Food inflation at grocery stores could remain elevated if price pressures on the supply side persist and demand for food at home remains strong.

ABSTRACT The main purpose of this work is to conduct a systematic literature review regarding inflation expectations, their determinants, and their implications for policy making in Latin America. The analysis shows the importance of inflation expectations in the countries that use an inflation targeting scheme, while also supporting the idea that inflation expectations can affect other sectors of the economy. As for the determinants of expectations, the findings show the importance of past iterations of expectations, supporting the idea that the inflation expectations are heavily determined by themselves. The amount of research being conducted in this field is not comprehensive. This is even more evident in the Latin American region since it is a recent research field with a meager number of publications, deeming our study useful for future research. The classification process makes it easier to know the most common variables and econometric methods used to find the determinants of inflation expectations and their impact on other economic variables.

This dissertation examines the complex interplay between monetary policy and economic dynamics across three pivotal essays, each focusing on distinct aspects of monetary policy's influence on labor markets, inflationary expectations, and the production sector's extensive margin.

The first chapter analyzes the varied effects of unexpected expansionary monetary policy shocks on high- and low-skilled workers using a New Keynesian DSGE model with asymmetric search and matching frictions. The findings show that unemployment rates for low-skilled workers are more sensitive to these shocks, while high-skilled workers recover faster. This underscores the importance of considering labor skill heterogeneity in devising optimal monetary policies, particularly regarding their effects on consumption, unemployment, and wage dynamics across skill levels.

The second chapter assesses the impact of the Federal Reserve's August 2020 policy framework revision on inflation, employing a representative agent New Keynesian model. Simulations of inflationary shocks under different policy rules indicate that a rule combining asymmetric output growth responses and average inflation targeting initially raises inflation more than the standard Taylor rule but stabilizes it more effectively in the medium term.

The third chapter explores how monetary policy influences the extensive margin of the production sector, specifically how changes in borrowing costs affect firm entry by productivity levels. Using a New Keynesian model that includes Hopenhayn's entry and exit framework, the study finds that while monetary policy reduces borrowing costs and modifies the equity-bond trade-off to facilitate firm entry, it may also inadvertently attract less efficient firms, thereby potentially neutralizing initial output gains.

These chapters collectively contribute to the understanding of the diverse effects of monetary policy on the economy, emphasizing the crucial roles of labor market frictions, inflation targeting, and borrowing costs. This analysis not only advances the existing literature but also provides important insights for policymakers striving to balance economic stability and growth.

Inflation Rate in Turkey decreased to 32.87 percent in October from 33.29 percent in September of 2025. This dataset provides the latest reported value for - Turkey Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Inflation Rate in Japan increased to 3 percent in October from 2.90 percent in September of 2025. This dataset provides the latest reported value for - Japan Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.