Inflation rate and central bank interest rate 2024, by selected countries
Between January 2022 and July 2024, the average annual inflation rate decreased in 10 out of the 13 observed countries. Japan and Russia were the only countries where inflation increased during this period. In July 2024, among the surveyed countries, the interest rate was highest in Russia at 16 percent, while Japan had the lowest interest rate at 0.05 percent.
During the observed period, central banks raised their interest rates in every country shown in the graph. The central bank interest rate is one of the primary tools used to manage inflation: low rates tend to lead to rising inflation, while high rates generally aim to reduce inflation. As inflation surged between 2022 and 2023, central banks increased interest rates to slow inflation.
Which country has the highest inflation rate?
An efficient central banking system, among other factors, is key to managing inflation. Due to the lack of such a system, less developed economies tend to have higher inflation rates. In 2023, Zimbabwe had the highest inflation at over 667 percent, and it was followed by Venezuela and Sudan.
How is inflation measured?
The most common way of measuring inflation is through the consumer price index (CPI), which is a measure of overall change in consumer prices based on a representative basket of goods and services. A more business-focused way of measuring inflation is through the producer price index (PPI), which measures the average change over time in the prices domestic producers receive for their output. Both CPI and PPI are important economic measures, but they reflect prices from different points of view. While PPI measures prices based on commercial transaction for a product or a service, CPI measures the price changes that consumers meet.
