Global Inflation Outlook 2025: What Experts Predict for the Year Ahead

Background

Inflation rates have dominated economic headlines over the past few years. After spikes caused by the pandemic and disruptions to global supply chains, several countries saw inflation reach multi-decade highs. Central banks responded with aggressive interest rate hikes, aiming to stabilize prices and restore economic balance. As we look to 2025, analysts are evaluating the forces that could influence inflation both globally and in Switzerland.

What is happening now

As of mid-2024, global inflation rates have shown signs of easing, but remain above pre-pandemic levels in many regions. The International Monetary Fund (IMF) and Organisation for Economic Co-operation and Development (OECD) both released projections suggesting a gradual moderation in price increases for 2025. However, continued geopolitical tensions, persistent supply chain constraints, and climate-related disruptions remain key risk factors.

Impact on Switzerland

Switzerland’s traditional stability and strong franc have cushioned some of the global inflationary pressures, but not entirely. Swiss consumers have still felt the impact of higher imported goods prices and energy costs. The Swiss National Bank (SNB) has adjusted its policies accordingly, with cautious rate increases. A global inflation slowdown could offer relief to Swiss households and businesses while aiding central bank efforts to maintain price stability.

What happens next

Most experts anticipate that inflation will gradually descend closer to central bank targets in 2025, barring major external shocks. Swiss experts continue to monitor developments closely, as fluctuations in global inflation can directly influence trade, investments, and consumer purchasing power in the country. Swiss policymakers are expected to remain vigilant, adapting monetary policy as needed and strengthening support for vulnerable sectors.