A Rollercoaster Year for Global Economy: Inflation Trends Diverge in 2025

A Rollercoaster Year for Global Economy: Inflation Trends Diverge in 2025

Mixed economic indicators, diverging inflation rates, and fluctuating commodity prices paint a complex global economic landscape

Story: Global Inflation Trends Vary in 2025 Amidst Economic Complexity

Story Summary

In 2025, global inflation trends displayed significant variance, with Italy experiencing an acceleration to 1.5% while Russia saw a slowdown to 5.59%. Commodities also showed mixed trends, with gold and coffee prices rising, and smartphones and oil prices falling. Amidst these challenges, economies demonstrated resilience, with countries like Nigeria and Ghana initiating economic reforms. Looking ahead, consumers may face price increases, especially in the food sector, in 2026.

Full Story

Global Inflation Trends Differ: A Comprehensive Look at 2025

The year 2025 has seen inflation trends vary significantly across the globe, with some regions experiencing an acceleration of inflation, while others have seen a slowing down. The year closed with a mixed bag of economic indicators, not only for inflation but also for commodities and interest rates.

Diverging Inflation Trends

According to Italian news agency ANSA, the inflation rate in Italy accelerated to 1.5% in 2025, up from 1.2% in December. In contrast, TASS reports that annual inflation in Russia slowed down to 5.59% in December 2025, with consumer prices gaining 0.32% in monthly terms.

In Nigeria, the International Monetary Fund (IMF) welcomed the easing of inflation in December, backing the country's new Consumer Price Index (CPI) methodology. As reported by AllAfrica.com, the Nigerian Bureau of Statistics linked the old CPI series to a rebased and reweighted index using the full year of 2024 as the reference period.

Commodities and Interest Rates

In terms of commodities, ANSA reports that gold and coffee were among the top performers, while smartphones and oil became cheaper. This is attributed to the impact of geopolitics and speculation on global inflation trends.

On the other hand, interest rates for home loans increased in December, with the median rate at 3.37%. Despite this, the growth of loans to families and businesses continued, suggesting a degree of resilience in the market.

Political Reactions and Projections

The global economic scenario has drawn criticism from political leaders. U.S. President Donald Trump has attacked Federal Reserve chairman Powell, calling him incompetent or dishonest, according to Corriere della Sera. These comments came as Powell is currently under criminal investigation.

In Ghana, as reported by AllAfrica.com, President Mahama's first year in office was marked by cautious economic reform. The Ghanaian Times described it as a measured economic reset, rather than a mandate for delay.

Looking ahead, Brazilian newspaper Folha de S.Paulo projects that healthy food will become more expensive in 2026. The study, conducted by UFMG in partnership with Idec, indicates that the price of natural or minimally processed foods will surpass the price of ultra-processed foods for the first time.

Conclusion

The year 2025 ended with a complex global economic picture. Inflation trends varied widely, with some regions experiencing an increase while others saw a decrease. The commodities market also showed mixed results, with some goods becoming more expensive and others cheaper. Despite these challenges, the global economy showed resilience, with countries like Nigeria and Ghana implementing economic reforms and new methodologies. Looking ahead, consumers may have to brace for potential price increases, particularly in the food sector. The year 2026 will undoubtedly present its own set of economic challenges and opportunities.