Central Reserve Bank of Peru: Inflation Target data was reported at 2.000 % in 2020. This stayed constant from the previous number of 2.000 % for 2019. Central Reserve Bank of Peru: Inflation Target data is updated yearly, averaging 2.000 % from Dec 2002 (Median) to 2020, with 19 observations. The data reached an all-time high of 2.500 % in 2006 and a record low of 2.000 % in 2020. Central Reserve Bank of Peru: Inflation Target data remains active status in CEIC and is reported by Central Reserve Bank of Peru. The data is categorized under Global Database’s Peru – Table PE.I001: Consumer Price Index: Inflation Target.

Central Reserve Bank of Peru: Inflation Target: Lower Limit data was reported at 1.000 % in 2020. This stayed constant from the previous number of 1.000 % for 2019. Central Reserve Bank of Peru: Inflation Target: Lower Limit data is updated yearly, averaging 1.000 % from Dec 2002 (Median) to 2020, with 19 observations. The data reached an all-time high of 1.500 % in 2006 and a record low of 1.000 % in 2020. Central Reserve Bank of Peru: Inflation Target: Lower Limit data remains active status in CEIC and is reported by Central Reserve Bank of Peru. The data is categorized under Global Database’s Peru – Table PE.I001: Consumer Price Index: Inflation Target.

We report average expected inflation rates over the next one through 30 years. Our estimates of expected inflation rates are calculated using a Federal Reserve Bank of Cleveland model that combines financial data and survey-based measures. Released monthly.

Ten-Year TIPS Yields versus Real Yields is a part of the Inflation Expectations indicator of the Federal Reserve Bank of Cleveland.

Central Bank of Brazil: Inflation Target: Upper Limit data was reported at 4.500 % in 2025. This stayed constant from the previous number of 4.500 % for 2024. Central Bank of Brazil: Inflation Target: Upper Limit data is updated yearly, averaging 6.500 % from Dec 1999 (Median) to 2025, with 27 observations. The data reached an all-time high of 10.000 % in 1999 and a record low of 4.500 % in 2025. Central Bank of Brazil: Inflation Target: Upper Limit data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Global Database’s Brazil – Table BR.IB001: Consumer Price Index: Inflation Targeting. Resolution 5,141 revoked CMN Resolutions No. 5,018 and No. 5,091, which set the inflation targets for 2025 and 2026, respectively. Starting January 2025, the target refers to the twelve-month inflation, assessed monthly, as established by Decree No. 12,079, of June 26, 2024.

Expected Inflation Term Structure is a part of the Inflation Expectations indicator of the Federal Reserve Bank of Cleveland.

The inflation rate in the United States declined significantly between June 2022 and May 2025, despite rising inflationary pressures towards the end of 2024. The peak inflation rate was recorded in June 2022, at *** percent. In August 2023, the Federal Reserve's interest rate hit its highest level during the observed period, at **** percent, and remained unchanged until September 2024, when the Federal Reserve implemented its first rate cut since September 2021. By January 2025, the rate dropped to **** percent, signalling a shift in monetary policy. What is the Federal Reserve interest rate? The Federal Reserve interest rate, or the federal funds rate, is the rate at which banks and credit unions lend to and borrow from each other. It is one of the Federal Reserve's key tools for maintaining strong employment rates, stable prices, and reasonable interest rates. The rate is determined by the Federal Reserve and adjusted eight times a year, though it can be changed through emergency meetings during times of crisis. The Fed doesn't directly control the interest rate but sets a target rate. It then uses open market operations to influence rates toward this target. Ways of measuring inflation Inflation is typically measured using several methods, with the most common being the Consumer Price Index (CPI). The CPI tracks the price of a fixed basket of goods and services over time, providing a measure of the price changes consumers face. At the end of 2023, the CPI in the United States was ****** percent, up from ****** a year earlier. A more business-focused measure is the producer price index (PPI), which represents the costs of firms.

Central Bank of Chile: Inflation Target data was reported at 3.000 % in 2024. This stayed constant from the previous number of 3.000 % for 2023. Central Bank of Chile: Inflation Target data is updated yearly, averaging 3.000 % from Dec 2000 (Median) to 2024, with 25 observations. The data reached an all-time high of 3.000 % in 2024 and a record low of 3.000 % in 2024. Central Bank of Chile: Inflation Target data remains active status in CEIC and is reported by Central Bank of Chile. The data is categorized under Global Database’s Chile – Table CL.I001: Consumer Price Index: Inflation Target.

This panel dataset contains quarterly series on inflation targets, bands, and track records for 41 inflation targeting countries from 1990 to 2024. Data on inflation targets and bands are collected through each central bank’s historical documents and rules-based track record measures are calculated by the author to assess actual inflation outcomes with respect to the central banks’ stated policy objectives. The dataset supports research work in Zhang (2025), Zhang and Wang (2022), and Zhang (2021). Please cite the papers when using the data.

Z. Zhang, Does inflation targeting track record matter for asset prices? Evidence from stock, bond, and foreign exchange markets, Journal of International Financial Markets, Institutions and Money, Volume 101, 2025, 102141. Z. Zhang, S. Wang, Do actions speak louder than words? Assessing the effects of inflation targeting track records on macroeconomic performance, 2022, IMF Working Papers 2022/227.
Z. Zhang, Stock returns and inflation redux: An explanation from monetary policy in advanced and emerging markets, 2021, IMF Working Papers 2021/219.

In May 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In early 2025, Russia maintained the highest interest rate at 20 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.1 percent in May 2025. In contrast, Russia maintained a high inflation rate of 9.9 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

Central Bank of Colombia: Inflation Target data was reported at 3.000 % in Mar 2025. This stayed constant from the previous number of 3.000 % for Feb 2025. Central Bank of Colombia: Inflation Target data is updated monthly, averaging 4.000 % from Jan 1993 (Median) to Mar 2025, with 387 observations. The data reached an all-time high of 22.000 % in Dec 1993 and a record low of 3.000 % in Mar 2025. Central Bank of Colombia: Inflation Target data remains active status in CEIC and is reported by Bank of the Republic of Colombia. The data is categorized under Global Database’s Colombia – Table CO.I001: Consumer Price Index: Inflation Target.

Inflation Nowcasting Monthly Month-Over-Month is a part of the Inflation Nowcasting indicator of the Federal Reserve Bank of Cleveland.

Policy interest rates in the U.S. and Europe are forecasted to decrease gradually between 2024 and 2027, following exceptional increases triggered by soaring inflation between 2021 and 2023. The U.S. federal funds rate stood at **** percent at the end of 2023, the European Central Bank deposit rate at **** percent, and the Swiss National Bank policy rate at **** percent. With inflationary pressures stabilizing, policy interest rates are forecast to decrease in each observed region. The U.S. federal funds rate is expected to decrease to *** percent, the ECB refi rate to **** percent, the Bank of England bank rate to **** percent, and the Swiss National Bank policy rate to **** percent by 2025. An interesting aspect to note is the impact of these interest rate changes on various economic factors such as growth, employment, and inflation. The impact of central bank policy rates The U.S. federal funds effective rate, crucial in determining the interest rate paid by depository institutions, experienced drastic changes in response to the COVID-19 pandemic. The subsequent slight changes in the effective rate reflected the efforts to stimulate the economy and manage economic factors such as inflation. Such fluctuations in the federal funds rate have had a significant impact on the overall economy. The European Central Bank's decision to cut its fixed interest rate in June 2024 for the first time since 2016 marked a significant shift in attitude towards economic conditions. The reasons behind the fluctuations in the ECB's interest rate reflect its mandate to ensure price stability and manage inflation, shedding light on the complex interplay between interest rates and economic factors. Inflation and real interest rates The relationship between inflation and interest rates is critical in understanding the actions of central banks. Central banks' efforts to manage inflation through interest rate adjustments reveal the intricate balance between economic growth and inflation. Additionally, the concept of real interest rates, adjusted for inflation, provides valuable insights into the impact of inflation on the economy.

This paper evaluates inflation forecasts made by Norges Bank which is recognized as a successful forecast targeting central bank. It is reasonable to expect that Norges Bank produces inflation forecasts that are on average better than other forecasts, both ‘naïve’ forecasts, and forecasts from econometric models outside the central bank. The authors find that the superiority of the Bank’s forecast cannot be asserted, when compared with genuine ex-ante real time forecasts from an independent econometric model. The 1-step Monetary Policy Report forecasts are preferable to the 1-step forecasts from the outside model, but for the policy relevant horizons (4 to 9 quarters ahead), the forecasts from the outsider model are preferred with a wider margin. An explanation in terms of too high speed of adjustment to the inflation target is supported by the evidence. Norges Bank’s forecasts are convincingly better than ‘naïve’ forecasts over the second half of our sample, but not over the whole sample, which includes a change in the mean of inflation.

Graph and download economic data for 30-Year Expected Inflation (EXPINF30YR) from Jan 1982 to Jul 2025 about 30-year, projection, inflation, and USA.

Central Bank of Brazil: Inflation Target data was reported at 3.000 % in 2025. This stayed constant from the previous number of 3.000 % for 2024. Central Bank of Brazil: Inflation Target data is updated yearly, averaging 4.500 % from Dec 1999 (Median) to 2025, with 27 observations. The data reached an all-time high of 8.000 % in 1999 and a record low of 3.000 % in 2025. Central Bank of Brazil: Inflation Target data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Global Database’s Brazil – Table BR.IB001: Consumer Price Index: Inflation Targeting. Resolution 5,141 revoked CMN Resolutions No. 5,018 and No. 5,091, which set the inflation targets for 2025 and 2026, respectively. Starting January 2025, the target refers to the twelve-month inflation, assessed monthly, as established by Decree No. 12,079, of June 26, 2024.

Prices in New Zealand rose by 1.72 percent in 2020. Central bankers at the Reserve Bank of New Zealand were surely relieved to see the rebound from the dangerously low .29 percent inflation in 2015.

What is inflation?

Inflation is the rise in price levels in an economy. 2 percent inflation means 100 New Zealand dollars will be worth 98 dollars in one year. While the precise inflation target varies, most economists agree that inflation between 2 to 3 percent is optimal for an economy. High inflation can lead to higher unemployment because firms would rather wait and higher workers at the same price using future dollars, making the labor relatively cheaper. However, it affects the trade balance because of the relatively higher purchasing power of foreign currencies.

Other risks of inflation and deflation

Inflation helps a country with higher national debt when the debt is in the local currency, because the country can repay with the future dollars which are relatively cheaper. Deflation, then, helps when debts are in a foreign currency. The main problem with deflation is that investors prefer to hold their money, waiting to invest until it is worth more. This is particularly true of countries like New Zealand, where the lion’s share of employment is in the services sector.

Graph and download economic data for 10-Year Expected Inflation (EXPINF10YR) from Jan 1982 to Jun 2025 about projection, 10-year, inflation, and USA.

Abstract of associated article: Increasing the independence of a central bank from political influence, although ex-ante socially beneficial and initially successful in reducing inflation, would ultimately fail to lower inflation permanently. The smaller anticipated policy distortions implemented by a more independent central bank would induce the fiscal authority to decrease current distortions by increasing the deficit. Over time, inflation would increase to accommodate a higher public debt. By contrast, imposing a strict inflation target would lower inflation permanently and insulate the primary deficit from political distortions.

Abstract This paper analyzes a signaling model of monetary policy when inflation targets are not set by the monetary authority. The most important implication of the model’s solution is that a higher ex-ante dispersion in central bankers’ preferences, referred to as heterogeneity in policy orientation, increases the signaling cost of commitment to inflation targets. The model allows for a comparison of two distinct institutional arrangements regarding the tenure in office of the central banker and the head of government. We find that staggered terms yield superior equilibria when opportunistic political business cycles can arise from presidential elections. This is a consequence of a reduction of information asymmetry about monetary policy, and gives theoretic support to the observed practice of staggered terms among independent central banks.