Global economists warn of high inflation continuing through 2028

In the context of rising global inflation rates, a survey conducted by the ifo Institute revealed that economists expect inflation to remain significantly elevated over the coming years. This survey, known as the Economic Experts Survey, included responses from 1,340 economists across 121 countries and was carried out from June 17 to July 1, 2025. The results indicated a projected global average inflation rate of 4.0 percent for 2025, which aligns with expectations from the previous quarter. Ifo researcher Philipp Heil noted that both short-term and long-term inflation expectations have stabilized at notable levels. Economists identified current trade conflicts and import tariffs as crucial contributors to these inflated rates. Notably, while inflation expectations in Western Europe for 2025 sit at 1.8 percent—which is below the European Central Bank’s target of 2 percent—regions such as Eastern Europe and parts of Asia showed significantly higher forecasted inflation rates. The United States expects a rise in inflation to 3.7 percent in the following year, up from 3.1 percent this year, with tariffs imposed on imports cited as a primary reason for this increase. Moreover, forecasts suggest that many African nations will face the highest inflation rates, potentially exceeding 20 percent in certain areas. The data highlights a troubling trend of stagnation in long-term inflation expectations, with predicted figures of 3.9 percent for 2026 and 3.7 percent for 2028, indicating that these high rates are not expected to decline substantially in the near future. This stagnation raises concerns among economists regarding the efficacy of measures undertaken to control inflation and stabilize economies globally. The overall impact of these findings points to a composite view where global economic policies are facing challenges, primarily due to external factors like trade disputes. It is essential for policymakers to understand these dynamics to implement effective strategies aimed at curbing inflation while fostering economic growth. As the global economy wrestles with these inflated rates, acknowledging the disparities between different regions will be vital in developing targeted interventions that address unique economic situations of regions affected more profoundly by inflation.