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10 Countries with the Highest Inflation Rate, Is Indonesia Included?

10 Countries with the Highest Inflation Rate, Is Indonesia Included?

idhealt.com —  10 Countries with the Highest Inflation Rate, including Indonesia?. The Covid-19 pandemic has had a real impact. Not only for health, but also for the world economy. This can be seen from the surge in inflation during the economic recovery period.

In addition to the prolonged pandemic, the spike in inflation also occurred due to external and internal factors. Some of these factors are supply chain disruptions and geopolitical tensions between Russia and Ukraine.

The Russo-Ukrainian war made Western countries impose economic sanctions on Russia. As a result, several countries that are dependent on exports and imports with Russia also fell amid increasing demand.

LIHAT JUGA

Quoting the definition of inflation from Bank Indonesia (BI), Thursday (12/5/2022), inflation is a sign of rising prices for goods and services in general and continuously within a certain period of time.

Due to rising prices of goods, high inflation will erode people’s purchasing power. Inflation that is too high will have a negative impact on people with lower middle income who already have a mediocre income, even before inflation increases.

Another negative impact will cause the real income of the community to continue to decline. As a result, people’s living standards decline and make the poor fall into extreme poverty.

High and continuously increasing inflation will create instability and uncertainty for economic actors in making decisions.

The level of impact of domestic inflation which is higher than the inflation rate in neighboring countries makes the real domestic interest rate uncompetitive, which can put pressure on the rupiah exchange rate.

10 countries with high inflation rates

High and persistent inflation rates have occurred in several countries. Not only the pandemic, there are several internal factors that cause inflation to soar.

In Turkey, for example, inflation on an annual basis (year on year / yoy) has increased by tens of percent, one of which is caused by the economic crisis in the country. Inflation in Turkey is currently the highest in the world.

Meanwhile, inflation in the United States rose 8.3 percent (yoy). Its value is close to the highest in the last 40 years.

The increase in US inflation was caused by rising prices for consumer goods. The Consumer Price Index (CPI) recorded an increase of 8.3 percent (yoy), lower than the previous month’s 8.5 percent (yoy).

Meanwhile, US core inflation was 0.6 percent, up from 6.2 percent in March 2022. The contributors to US inflation include food prices, housing, airline tickets, and vehicle prices

Quoted from Trading Economics, here are the 10 countries with the highest inflation rates in the world:

1. Turkey with an annual inflation rate of 69.97 percent

2. Argentina with an annual inflation rate of 55.1 percent

3. Russia with an annual inflation rate of 16.7 percent

4. Brazil with an inflation rate of 12.13 percent on an annual basis

5. The Netherlands with an annual inflation rate of 9.6 percent

6. Spain with an inflation rate of 8.4 percent on an annual basis

7. The United States with an inflation rate of 8.3 percent on an annual basis

8. Mexico with an inflation rate of 7.68 percent on an annual basis

9. Germany with an inflation rate of 7.4 percent on an annual basis

10. Great Britain with an annual inflation rate of 7 percent

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