Global Inflation Predictions for 2025: What Experts Expect

Background

The last few years have seen record inflation rates fueled by post-pandemic recovery, disrupted supply chains, and geopolitical tensions. Central banks around the world responded with aggressive interest rate hikes to curb rising prices. By late 2024, signals began to emerge that inflation was easing, but considerable uncertainty remains regarding future trends.

What is happening now

Economic analysts, including the International Monetary Fund (IMF) and the Swiss National Bank (SNB), forecast that global inflation will slow in 2025, but price increases will remain above pre-pandemic levels in many countries. The United States and Eurozone project inflation rates of 2–3%. Switzerland’s inflation, traditionally lower than its neighbors, is expected to stabilize around 1.5%, according to the SNB’s latest mid-year outlook. Factors influencing these forecasts include energy prices, wage developments, and persistent geopolitical risks.

Impact on Switzerland

Switzerland’s strong franc, cautious monetary policy, and resilient economy have shielded it somewhat from global price shocks. That said, imported goods and energy costs continue to influence Swiss prices. While grocery and rent inflation have eased compared to 2023, consumers and businesses remain alert to potential volatility. Exporters are watching currency fluctuations closely, as a strong franc can impact competitiveness in global markets.

What happens next

Most experts agree that inflation will remain a key concern throughout 2025, albeit less acute than in previous years. The SNB is expected to maintain a careful balance between supporting economic stability and curbing inflationary pressures. Households and businesses should prepare for moderate price increases, particularly if global supply chains face further disruptions. Close monitoring of energy markets, currency trends, and central bank decisions will be essential as the year unfolds.