Inflation rate in Afghanistan 2023

This timeline shows the inflation rate in Afghanistan from 2006 to 2023. In 2023, Afghanistan's average inflation rate amounted to -7.71 percent compared to the previous year. 

Afghanistan's economy

Inflation in Afghanistan has experienced an increase every year with the exception of 2009. Some short-term increases in prices are often attributed to wars, which is a fundamental reason for yearly inflation in Afghanistan. On the other hand, wars often cause spikes in GDP, primarily due to an increased amount of production and reparations. This was not the case for Afghanistan, however. GDP, more specifically GDP per capita, remained relatively low as of 2013, despite increasing annually and ranked as one of the top 20 lowest gross domestic product per capita values in 2013. GDP per capita measures a country’s productivity by using its entire gross domestic product and dividing it by the number of people in the country and is mostly used to compare one nation with another.

From an economic standpoint, Afghanistan imported many more goods than they exported, leading to a trade deficit. The country has experienced a trade deficit every year over the past decade, most notably in 2011. Reasons for the ongoing deficit could potentially be the lack of government support for domestic production as well as stiff rules towards marketing. Also, production and transport are likely to suffer due to the war. A trade deficit also implicates that a country borrows more money from other nations in order to sustain and fulfill the needs its economy, along with its citizens.