5 Countries with the Highest Inflation

Inflation can have profound effects on economies and daily life, leading to soaring prices and eroding purchasing power. The situation can impact both individuals and business, as consumers struggle to afford the basic necessities and businesses face challenges in maintaining profits and suitably planning for the future.

Using data from Global Finance, we will explore the five countries currently grappling with the highest inflation rates. We’ll examine the underlying causes, from economic mismanagement to geopolitical factors, to try to understand how these nations have been so impacted by inflation.

In 2024, Zimbabwe is the country with the highest inflation rate in the world, at 560.9. The country has been struggling with spiking inflation for over a decade, although rates have fallen this year from 667.3 last year.

In the late 2000s, Zimbabwe experienced a period of extreme hyperinflation, which pushed many people into poverty as savings were wiped out and businesses disrupted. In 2009, the Zimbabwean government abandoned its currency and adopted a multicurrency system, which helped in some way to stabilise the economy, although the long-standing effects continue.

This yea a new currency – the gold-back ZiG (Zimbabwe Gold) – was introduced, in an attempt to reduce reliance on foreign currency, particularly the US dollar. However, with confidence in the currency presently low and severe volatility around exchange rates, the cost of goods and services has been impacted and economic instability has continued.

Argentina has the second-highest inflation in the world, at 249.7. Inflation rates in Argentina have risen rapidly in the past few years, from 48.4 in 2021, to 72.4 in 2022, and 133.4 in 2023.

The economic issues for Argentina stem from 2018, when its foreign debt obligations grew to unsustainable levels, and the peso collapsed against the US dollar. The government has resorted to printing money to finance budget deficits and provide economic support, however without a corresponding increase in goods and services, this leads to inflation.

Another issue affecting Argentina is the fact that the country is reliant on imports for many essential goods. As global food and energy prices rise, this has an impact on the domestic economy, which sees inflation rates rise.

Sudan has the third-highest inflation in the world, at 145.5. This is a reduction from last year’s rate of 171.4 and much lower than 2021’s high of 359.0, albeit still relatively high.

Sudan has been experiencing economic and political instability for years, which has had an impact on inflation. Political unrest disrupts government policymaking, which undermines economic confidence and contributes to inflation. Sudan has a large budget deficit, which has resulted in the government often printing money in an attempt to provide economic support.

As a result of the ongoing conflict, there has also been a shortage of food and disruptions in production and trade, especially in regions such as Darfur which see the most severe conflict. This has resulted in the prices of basic goods increasing, which is a major cause of inflation.

Venezuela has the fourth-highest inflation rate, at 99.9. Venezuela has experienced high fluctuations in inflation over the past five years, with rates at 2,355 in 2020, falling to 1,588 in 2021, falling again to 186.5 in 2022 and rising briefly to 337.5 in 2023.

Inflation rates in Venezuela are high due to a reliance on imports for basic goods, plus inefficiency and corruption in government. In addition, Venezuela depends on oil as its major export. As demand has fallen and the price of oil has plummeted in recent years, majorly impacting the domestic economy.

In an effort to provide support, the government turned to printing money in order to afford the increasing price of the goods it required to import. However, as we’ve seen in the other countries on this list, printing money only exacerbates the inflation issue and leads to further shortages of basic goods such as food.

Türkiye (aka Turkey) is the country with the fifth highest inflation rate this year, at 59.52. Türkiye saw a significant inflation spike in 2022, when it was at 72.3, and has been struggling to regain stability since.

One reason has been due to the devaluation of the local currency, the lira. With a weak currency, imports become more expensive, which drives up the overall prices and sees inflation rates rise. This devaluation is partly due to government policy. In an unconventional act, the government has kept interest rates low in an effort to reduce inflation, contrasting with the more widely accepted economic theory that raising rates is necessary to combat inflation. This has contributed to a cycle of rising inflation.

Below are the top 10 countries in the world with the highest inflation rates.

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