These are the countries with the highest inflation

Money

(Credit: Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Douglas Broom, Senior Writer, Formative Content


The rate of inflation has a big impact on your financial situation, affecting mortgage payments, savings and the cost of your weekly shopping.

How the price of goods and services we regularly spend money on changes over time is used by governments and businesses to take the temperature of a nation’s economy. It’s generally accepted that low, predictable growth is best for everyone. The global inflation rate is currently around 3.6%, according to the International Monetary Fund.

But if inflation is too high or if it moves around a lot, it’s difficult for businesses to set the right prices and for consumers to plan their spending, says the Bank of England. If prices go up drastically in a short time you can’t buy as much with the same amount and it can be hard to work out how much your money is worth.

And some countries that are hobbled by political and economic instability – Venezuela, Zimbabwe and South Sudan chief among them – are facing cripplingly high inflation rates, according to data compiled from Trading Economics.

Image: World Economic Forum

Crisis-hit Venezuela tops a list of countries with the highest levels of inflation, with a rate estimated at almost 300,000% in April. With the nation’s political and economic turmoil showing no signs of abating, the IMF predicts the rate will soar to 10 million percent by the end of the year.

Around 4 million people have fled Venezuela amid political and economic uncertainty, according to the UN Refugee Agency. The economy is less than half the size it was in 2013, as plummeting oil production, hyperinflation and political uncertainty combined to create a vicious cycle that’s proving hard to break.

Second on the list, Zimbabwe currently has an inflation rate just under 176%, stoking concern that the nation is returning to the hyperinflation it suffered a decade ago.

Prices are increasing amid a scarcity of essentials, including bread, fuel and medicine. Zimbabwean President Emmerson Mnangagwa promised stability after he took over from Robert Mugabe in 2017, but it seems an economic revival is yet to materialize.

As Zahid Hussain, lead economist at the World Bank, puts it: “Economic growth and political stability are deeply interconnected. But not all forms of political stability are equally development friendly; much depends on the extent to which stability translates into good governance.”

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Eurogroup: IMF proposes Germany disposes

What will it take for the world’s third-largest economy to empower women?

Latest tragedy in the Mediterranean claims over 100 lives – UN refugee agency

New energy security framework will help meet growing needs in East Africa, sustainably – UN economic wing

The world is too complacent about epidemics. Here’s how to change

Parental leave: why we can’t wait a century for equal rights for women

The Sichuan Province of China presents its cultural treasure to the EU

Make progress or risk redundancy, UN chief warns world disarmament body

State of the Union 2018: The Hour of European Sovereignty

What Ghana can teach us about integrating refugees

UN appeals for international support as flood waters rise in wake of second Mozambique cyclone

‘Continuing absence’ of political solution to Israel-Palestine conflict ‘undermines and compounds’ UN efforts to end wholesale crisis

These technologies are playing a major role at the Cricket World Cup

There are now four competing visions of the internet. How should they be governed?

In tech-driven 21st century, achieving global development goals requires closing digital gender divide

Working together to end the AIDS-HIV pandemic

UN food agency begins ‘last resort’ partial withdrawal of aid to opposition-held Yemeni capital

3 ways to ensure the internet’s future is creative, collaborative and fair

We can’t tell if we’re closing the digital divide without more data

Safer products: stepping up checks and inspections to protect consumers

How transparency can help the global economy to grow

Plastic is a global problem. It’s also a global opportunity

Crowdfunding: what it is and what it may become

Do we really understand the value of independent journalism?

The Sting’s Team

OECD will follow Canadian proceedings addressing allegations of political interference in foreign bribery prosecution

UN calls for funds to ease ‘deteriorating’ humanitarian situation in Gaza and West Bank

The EU Parliament and the ECB unknowingly or unwillingly fail to protect our financial assets

Young activists do the talking as UN marks World Children’s Day

IFMSA and IPSF on the Health of Migrants and Refugees

Do the EU policies on agro-food smell?

How traditional Islamic giving can play a role in the future of aid

For video game addiction, now read official ‘gaming disorder’: World Health Organization

European Court of Justice to Google: It is #righttobeforgotten but not #righttoberemembered

Young people meet in Malta to shape the future of Europe

Britain heading to national schism on exit from EU

Essential services on verge of shutdown in Gaza as emergency fuel set to run out

An American duel in Brussels: Salesforce against Microsoft over Linkedin deal

How solar is powering the Middle East towards renewables

From violence to dialogue: as land conflicts intensify, UN boosts efforts to resolve disputes through mediation

G20 LIVE: Fact Sheet from the G20 Leaders Summit and key outcomes (G20 Antalya 2015 Summary)

Trump beats Clinton but Americans will learn the hard way that the US can’t change with an election

How drones can help rural Africa take flight

It’s time for cybersecurity to go pro bono

Reducing disaster risk is a good investment, and ‘the right thing to do’, says Guterres

Commission launches debate on more efficient decision-making in EU social policy

Facility for Refugees in Turkey: €127 million to boost EU’s largest ever humanitarian programme

€200 million to promote European agri-food products in and outside the EU

Eurozone plans return to growth

THE ROAD TO GANESHA

Barriers to healthcare: are they real?

Treaty prohibiting nuclear weapons marks first anniversary, but still lacks sufficient numbers to become law

How UN cultural treasures helped set the stage for Game of Thrones

EU-Singapore free trade deal gets green light in Trade Committee

Starbucks and FIAT again under Commission’s microscope: is Europe ready to kick multinationals out of the house?

India can soar in the robot age. This is how

UN Security Council urged to act against ‘worst-case scenario’ Syria’s war-battered Idlib

Draghi’s 2018 compromise: enough money printing to revive inflation and check euro ascent

Draghi cuts the Gordian knot of the Banking Union

EU commits €9 million in humanitarian aid for the most vulnerable families in Myanmar

More Stings?

Comments

  1. I am studying the economic situation in Sudan. Your article is very useful in comparing different countries in terms of inflation.

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s