Global Inflation Outlook: Expert Predictions for 2025

Background

Inflation, characterized by rising prices and the decreasing purchasing power of money, has been a central concern since the economic disruptions caused by the COVID-19 pandemic and subsequent global recovery efforts. Accelerated energy costs, disrupted supply chains, and changing trade dynamics have contributed to heightened inflation rates worldwide in recent years.

What is happening now

Heading into 2025, leading financial organizations—including the International Monetary Fund and World Bank—forecast that while global inflation will begin to moderate, some regions will continue to see elevated rates. Central banks in the United States, Europe, and beyond are maintaining high interest rates to control inflation, but pressures remain due to persistent energy costs and geopolitical tensions. According to recent reports, some emerging economies may continue battling inflation above target levels, whereas developed economies expect a more stable outlook.

Impact on Switzerland

Switzerland has so far managed to maintain relatively low inflation rates compared to many European neighbors, thanks to strong currency performance and cautious fiscal policy. Swiss consumers and businesses have faced modest price increases, particularly in sectors such as energy and imported goods. The Swiss National Bank is expected to keep monetary policy tight until inflation is fully under control, while local economists project that inflation in Switzerland will remain well below EU averages in 2025. However, Switzerland is not immune to external shocks, especially fluctuations in energy prices and cross-border trade.

What happens next

Experts suggest that if central banks remain vigilant and supply chain issues continue to ease, inflation could stabilize further by the end of 2025. For Switzerland, continued policy caution and diversified economic strategies will be key to maintaining stability. Global developments—such as energy market shifts or new geopolitical shocks—could alter outlooks rapidly. Swiss households and businesses are advised to monitor official statements and adjust their financial planning accordingly.