Countries with the highest inflation rate 2021

At the end of 2021, Venezuela had the highest inflation rate in the world, at 1,588 percent change compared to the previous year. This is the ninth consecutive year where inflation in Venezuela was the highest in the world, although it is much lower than its 2018 figure of 65,374 percent.

Inflation in industrialized and in emerging countries

Higher inflation rates are more present in less developed economies, as they often lack a sufficient central banking system, which in turn results in the manipulation of currency to achieve short term economic goals. Thus, interest rates increase while the general economic situation remains constant. In more developed economies and in the prime emerging markets, the inflation rate does not fluctuate as sporadically.

Additionally, the majority of countries that maintained the lowest inflation rate compared to previous years are primarily oil producers or small island independent states. These countries experienced deflation, which occurs when the inflation rate falls below zero; this may happen for a variety of factors, such as a shift in supply or demand of goods and services, or an outflow of capital.