In 2025, global inflation showed a noticeable slowdown compared to recent years, driven primarily by easing food and energy prices. However, the pace of change varied across regions due to differences in economic conditions, domestic demand, and policy approaches.
In OECD countries, headline inflation declined to 4.2% by March 2025, the lowest since mid-2021, reflecting lower energy costs and stabilizing food prices. In the United States, the CPI rose 3.0% year-over-year in September, slightly above the previous month, driven by higher gasoline prices, while core inflation held steady at 3.0%.
Canada saw inflation drop to 1.7% in April, largely due to falling energy costs, though other sectors continued to experience moderate price pressures. In Dubai, inflation eased to 2.3%, supported by lower fuel costs despite rising housing expenses, with the UAE Central Bank projecting an overall rate of around 2% for the year.
In Sub-Saharan Africa, food inflation remained high, with Ghana reporting a 15.1% increase in July, highlighting vulnerabilities in staple commodities. In Asia, inflation was generally subdued, particularly in economies with strong manufacturing output and moderate domestic demand, though some countries faced localized pressures from currency fluctuations or policy changes.
Overall, 2025 has been marked by a moderation of global inflation, underpinned by lower energy and food prices. Yet, regional disparities persist, requiring targeted policy measures to ensure economic stability and sustainable growth.