Economists expect global inflation to remain high at least until 2028, according to a new survey that may add to market concerns about sticky price pressures.
They forecast an average inflation rate of 3.5% in three years, only slightly below the 3.9% anticipated for 2025, a quarterly study conducted by the German Ifo Institute and the Institute for Swiss Economic Policy published Tuesday showed. Almost 1,400 experts from 125 countries took part in the survey in early December.
“Inflation expectations remain above the inflation targets of many central banks,” said Niklas Potrafke, director of the Ifo Center for Public Finance and Political Economy. “Major interest rate cuts are unlikely given these inflation expectations.”
Recent data in the US and the euro area have fueled concerns that consumer-price growth may prove more stubborn than thought and led to a global repricing of interest-rate cut expectations – in particular for the Fed.
According to the survey, price expectations have risen particularly for Northern America. In 2025, experts see an average rate of 2.6% — 0.2 percentage points more than in the previous survey round in the third quarter. It’s seen at 2.8% in 2026 and 2.9% in 2028.
While economists see an inflation rate of 2% in 2028 for Western Europe, they forecast 2.7% in Southern and 2.5% in Northern Europe.
