5 Countries With Some of the Highest Inflation Rates in the World, Makes U.S. Inflation Look Minuscule

Inflation is a topic on many Americans’ minds. The cost of living in the United States is rising, affecting housing prices and the cost of essentials like groceries. While many Americans can’t imagine what life would be like if inflation rises further, some people in other parts of the world face much higher inflation rates.

Politics, currency rates, and international trade can affect a country’s inflation rate. But which countries are struggling worse than the U.S. on the inflation front?

Forbes ranked which countries have the highest inflation rates in the world. You might be surprised to learn just how low U.S. inflation is compared to those on their list.

Measuring Inflation Rates

Forbes used data from the International Monetary Fund and worldwide central banks to determine which countries have the highest inflation rates. They steadily tracked the information from the pandemic in 2020 through the end of 2023 to provide the most up-to-date inflation figures. 

Experts determine inflation numbers based on the amount prices rise over a set period of time. That includes increases in the cost of living, food, and services. Although certain policies can help curb inflation, some countries’ efforts haven’t helped to reduce their sharp increase in inflation over the last few years. 

With that in mind, these are the countries with the highest inflation rates.

1: Argentina

Inflation percentage in January 2024: 211.4%

2: Venezuela

Inflation percentage in January 2024: 189.8%

3: Sudan

Inflation percentage in January 2024: 71.6%

4: Turkey

Inflation percentage in January 2024: 64.0%

5: Zimbabwe

Inflation percentage in January 2024: 26.5%

For Comparison

In January 2024, America’s inflation rate was 3.1%. That’s a significant decrease from June 2022, when inflation was at 9.1%.

April 2015 was the last time the U.S. experienced a negative inflation rate, which was -0.2%.

Venezuela’s Inflation Rises

Venezuela has the second-worst inflation rate in the world. The South American country’s troubles stem back to the many economic issues it’s faced over the last decade. In the last 10 years, three million Venezuelans have fled their country. That’s the largest displacement in any country in Latin American history. In 2013, inflation in Venezuela rose to 800% and a state of emergency was declared.

The value of Venezuela’s money depends on the country’s export earnings from oil. When the global price of oil dropped, the foreign demand to buy oil from Venezuela fell so dramatically that the country’s economy crumbled.

In response to the crisis, Venezuela’s politicians decided to print more money, which caused hyperinflation. The Venezuelan currency, the bolívar, lost so much value that Venezuelans rushed to exchange their money for the much stronger U.S. dollar, which caused the dollar to rise and the bolívar to plummet even more. 

U.S. Inflation Trending Downward

Argentina’s inflation rose to over 200% by the end of 2023. Compare that to the U.S., which had an inflation rate on the low side at 3.4%. While the U.S. had an increase in inflation from November to December in 2023, with an increase of about .3%, reports show that inflation is expected to fall in 2024 and beyond.

Experts note that because price spikes caused by supply chain issues are relaxing, inflation in the U.S. is expected to fall by approximately 2% between 2024 and 2028. Inflation in the food, energy, and housing sectors is also expected to decrease during that time. Many Americans are already seeing rent prices drop because demand is slowing. 

Zimbabwe-U.S. Inflation Connection

Zimbabwe’s high inflation, which at one point rose to 170% in the summer of 2023, could be due to the many problems it’s facing, including a currency crisis and power outages. Droughts caused by El Niño have affected hydroelectric power, with major power cuts happening in parts of the country for up to 20 hours per day. 

The U.S. has placed sanctions on government officials in Zimbabwe because of possible corruption related to their economy. The Zimbabwean government says the sanctions negatively impact economic progress, and public relations between Zimbabwe and other countries might suffer because of the strained relationship with the U.S.

The U.S., though, insists our sanctions aren’t targeting the people of Zimbabwe, and instead focus on the officials involved in possible corruption. 

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