Which do you think the countries with the highest inflation rates in the world are? At first, what is inflation? As Insider Monkey define it in their article: ‘Inflation is one of the indicators of a country’s economic state, representing a percentage change in the general level of prices for goods and services paid by consumers (for consumer price index) and producers (for producer price index).’ If the inflation is higher, the purchasing power is lower. When it comes to average inflation, it souldn’t exceed 2% per year in normal conditions.
Generally, investors try to protect themselves against higher inflation rates by investing in inflation protected vehicles. The most inflation protected ETFs among investors are SchwabAt the moment the U.S. TIPS ETF (NYSE:SCHP), Vanguard Short-Term Inflation-Protected Securities Index Fund ETF Shares (NASDAQ:VTIP), iShares TIPS Bond ETF (NYSE:TIP),and iShares 0-5 Year TIPS Bond ETF (NYSE:STIP). But there is a problem with these bonds – the yieald is still tiny due to historically aggressive loose monetary policies across the globe. For example Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE:VIG) returned more than 22% in 2019.
Presently, the consensus view among Central bankers is that inflation doesn’t mean too much trouble for most of the world. Nevertheless lots of unexpected things have happened so far as the history shows us. We can find exceptionally critical hyperinflation cases in the history, such as it was recorded in Hungary during 1945-1946, with a monthyl rate 4.19 x 1016%, or in Zimbabwe in 2007-2008, with a monthly inflation rate of 7.96 x 1010%, and (former) Yugoslavia during the period 1992-1994 with a monthly inflation rate of 313,000,000%.
So without delaying any longer, let’s check out the 11 countries with the highest inflation rates in the world. And they are:
Inflation rate of 17.24% (July 2019)
Although Angola is among the countries that constantly struggle with the highest inflation in the world, the economical situtaion seems to be better compared to the inflation rate of 19.21% in September 2018.
10. Sierra Leone
Inflation rate of 17.46% (March 2019)
As the unemployment rate is over 70% in Sierra Leone, no one will wonder that this country struggles with severe economical problems. However the situation seems to be better than in March 2019, as the peak was about 19% then.
Inflation rate of 18.60% (June 2019)
Inflation in Haiti appears to be increasing. If we compare to the same period in 2018, the inflation rates was 13.6%.
Inflation rate of 23.30% (April 2019)
Inflation in Liberia slightly decreased in 2019, as its highest peak was 28.5% in December 2018.
Inflation rate of 47.80% (June 2019)
The econimic situation seemed to be better in Sudan last year, especially if we compare to the previous year’s highest peak of 72.94%.
Inflation rate of 48.00% (July 2019)
We are half way through our list of the 11 countries with the highest inflation rates in the world. Inflation rate doubled within a year, its highest peak was 52% last May.
Inflation rate of 54.40% (July 2019)
The year of 2019 brought devastation to Argentina’s economy. With its highest peak of 57.3% in May, 2019, the inflation doubled compared to the last year’s rates.
4. North Korea
Inflation rate of 55.00% (July 2019)
Inflaton rates of this country has been slightly decreasing, compared to March 2018, when the inflation was at 140%.
3. South Sudan
Inflation rate of 56.66% (March 2019)
There was a significant drop from 72.94% (December, 2018) to 43.45% (January, 2019). Decreasing of the inflation has been slightly continuing, nevertheless the situation is pretty far from good.
Inflation rate of 175.66% (June 2019)
Inflation in Zimbabwe was almost perfect in July 2018: 4.29%. But since October 2018, it has dramatically increased, reaching the critical 175.66% in June, 2019. It began to struggle with its currency, as it changed its currency to US dollar in 2015, and later, in 2019 it returned to its local currency again, which caused that the rapid growth of inflation.
Inflation rate of 282,972.80% (April 2019)
When it comes to the 11 countries with the highest inflation rates in the world, Venezuela hits the top. Although the high reates seem to de decreasing, the economic situation is far from what we could call good. Its oil export dropped from $85 million to $30 billion petween 2013 and 2019.