Inflation rate and central bank interest rate 2024, by selected countries

Global inflation rates declined significantly in September 2024, with most major economies seeing substantial reductions from their January 2022 levels. This trend reflects the efforts of central banks worldwide to combat rising prices through interest rate hikes. Notably, Russia stands out with the highest interest rate at 19 percent, while Japan maintains the lowest at 0.25 percent.

Varied inflation rates across major economies

The inflation landscape varies considerably among major economies. China had the lowest inflation rate at 0.4 percent in September 2024, a slight decrease from its already low 0.9 percent in January 2022. In contrast, Russia maintained a high inflation rate of 8.6 percent. These figures align with broader trends observed in August 2024, where China had the lowest inflation rate among major developed and emerging economies at 0.6 percent, while Russia's rate stood at nine percent. 

Central bank responses and economic indicators

Central banks have responded to inflationary pressures by raising interest rates across the board. The European Central Bank, for instance, increased its rate from 0 percent in January 2022 to 3.65 percent by September 2024. This aligns with efforts to manage inflation, which stood at 3.4 percent in the European Union as of December 2023. Economic indicators like the Big Mac Index provide additional context for understanding purchasing power parity across countries. As of July 2024, a Big Mac in Switzerland cost 8.07 U.S. dollars, compared to 5.69 dollars in the U.S. and 6.06 U.S. dollars in the Euro area, highlighting variations in currency valuation and economic conditions.