Global inflation is expected to continue its downward trend in 2025, providing some financial relief for both businesses and consumers and supporting their income and spending growth. Stabilised energy and food prices, as well as a gradual cooling of labour markets and stagnating demand are keeping inflationary pressures in check. The outlook, however, is fragile. Elevated trade policy uncertainty stemming from the new US administration, for instance, poses a significant upside risk to global inflation. Inflation rates will also diverge significantly across economies in 2025. Given the ongoing volatility and varying consumer prices, companies must closely monitor market trends across markets to adapt to shifting consumer behaviour and stay competitive.
Argentina is expected to gradually escape hyperinflation, thanks to fiscal austerity, slower currency depreciation, and the high-base effect, while its estimated 2025 inflation rate of 54% remains the highest in the world. Switzerland's low inflation is driven by modest wage growth and lower electricity tariffs. In China, subdued domestic demand and vast manufacturing capacity are causing deflationary trends, raising concerns about a further weakening of consumer spending.
Check out the report, Economies and Consumers in 2025, to gather insights on the most impactful trends affecting the global economic and consumer landscape in 2025.