Your Guide To Inflation Rates Around The World

Zimbabwe hyperinflation

Photo: AP

Everyone is worried about inflation making their money worth less or even worthless.Morgan Stanley’s The Global Monetary Analyst report is out with data on global inflation rates, and the data is striking.

One third of countries listed in the report experienced annualized inflation rates above their local central bank targets.

In the U.S., inflation was surprisingly tame, especially when compared to peers in Europe and Asia.

The story of the U.K., which has had to grapple with similar welfare program cuts as in the U.S., seems out of a different book. Spiking commodity prices have made it increasingly difficult for families to spend on non-essential goods. The Bank of England cut growth targets for the country to less than 1.0% for 2011 and 2012, making inflation all the more painful to stomach.

Elsewhere, as in Russia, inflation ticked down, even while targets remained above targets.

This guide includes the local central bank’s inflation target, the actual inflation rate, and Morgan Stanley’s 12-month forecast for inflation.

Switzerland

Inflation target:

2% (CPI)

Last month's inflation rate:

-0.1%

Morgan's 12 month forecast rate:

N/A

Japan

Inflation target:

0-2% (CPI)

Last month's inflation rate:

0.2%

Morgan's 12 month forecast rate:

-1.0%

Norway

Local Inflation target:

2.5% (CPI)

Last month's inflation rate:

1.4%

Morgan's 12 month forecast rate:

N/A

United States

Inflation target:

1.7%-2.0% (PCE price index)

Last month's inflation rate:

1.6%

Morgan's 12 month forecast rate:

2.1%

Sweden

Local Inflation target:

2.0% (CPI)

Last month's inflation rate:

2.9%

Morgan's 12-m forecast rate:

1.9%

Israel

Inflation target:

1-3% (CPI)

Last month's inflation rate:

2.8%

Morgan's 12 month forecast rate:

2.2%

The Euro Zone

Inflation target:

2% (HICP)

Last month's inflation rate:

3.0%

Morgan's 12 month forecast rate:

1.7%

Mexico

Inflation target:

3% +/-1 (CPI)

Last month's inflation rate:

3.2%

Morgan's 12 month forecast rate:

3.7%

Canada

Inflation target:

1%-3% (on CPI)

Last month's inflation rate:

3.2%

Morgan's 12 month forecast rate:

1.7%

Australia

Inflation target:

2-3% over cycle

Last month's inflation rate:

3.5%

Morgan's 12 month forecast rate:

2.7%

South Korea

Inflation target:

2-4% (CPI)

Last month's inflation rate:

3.9%

Morgan's 12 month forecast rate:

2.7%

Poland

Inflation target:

2.5% (+/-1 CPI)

Last month's inflation rate:

4.0%

Morgan's 12 month forecast rate:

3.2%

Indonesia

Inflation target:

5% +/-1%

Last month's inflation rate:

4.4%

Morgan's 12 month forecast rate:

6.2%

New Zealand

Inflation target:

1-3% (CPI)

Last month's inflation rate:

4.6%

Morgan's 12 month forecast rate:

N/A

The United Kingdom

Inflation target:

2% (CPI)

Last month's inflation rate:

5.0%

Morgan's 12 month forecast rate:

2.4%

China

Inflation target:

N/A

Last month's inflation rate:

5.5%

Morgan's 12 month forecast rate:

5.0%

Hong Kong

Inflation target:

N/A

Last month's inflation rate:

5.8%

Morgan's 12 month forecast rate:

5.3%

Brazil

Inflation target:

4.5% +/- 2.0% (IPCA)

Last month's inflation rate:

7.0%

Morgan's 12 month forecast rate:

5.8%

Russia

Inflation target:

6-7% (CPI)

Last month's inflation rate:

7.2%

Morgan's 12 month forecast rate:

7.6%

India

Inflation target:

N/A

Last month's inflation rate:

9.7%

Morgan's 12 month forecast rate:

8.8%

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