Inflationary pressures are expected to be considerable over the world in 2022, according to the International Monetary Fund. Inflation is expected to be harsher in developing nations, with average price hikes of 8.7% expected this year. The IMF set this figure as 5.7 percent in wealthy countries.
Following Russia’s invasion of Ukraine in February, the organization raised its inflation forecasts by 1.8 percent for developed countries and 2.8 percent for developing ones. This demonstrates that even before the war in Ukraine disrupted global energy and food supplies, inflation forecasts were already quite high, as supply chains overstretched by restocking needs following the end of major Covid-19 lockdowns had already caused inflation to rise to levels not seen since the Great Recession’s aftermath. Because many emerging countries are enjoying economic growth, inflation in this group is often greater on average. However, this does not rule out the possibility that non-industrialized countries will be heavily struck by inflation if it occurs at a time when their economies are faltering.
Inflation rates in countries facing conflict, turmoil, or serious economic crises are predicted to be far higher than the world average of 7.4% in 2022. Venezuela, Sudan, Zimbabwe, Turkey, Yemen, and Argentina are among them. Inflation is expected to be more than 5% but lower than 10% in around 80 nations, both developed and developing. This is higher than the estimated 60 needed to keep inflation below the 5% barrier.