Mapped: Which Countries Have the Highest Inflation Rate?

Inflation is surging nearly everywhere in 2022.

Geopolitical tensions are triggering high energy costs, while supply-side disruptions are also distorting consumer prices. The end result is that almost half of countries worldwide are seeing double-digit inflation rates or higher.

With new macroeconomic forces shaping the global economy, the above infographic shows countries with the highest inflation rates, using data from Trading Economics.

Double-Digit Inflation in 2022

As the table below shows, countless countries are navigating record-high levels of inflation. Some are even facing triple-digit inflation rates. Globally, Zimbabwe, Lebanon, and Venezuela have the highest rates in the world.

*Inflation rates based on the latest available data.

As price pressures mount, 33 central banks tracked by the Bank of International Settlements (out of a total of 38) have raised interest rates this year. These coordinated rate hikes are the largest in two decades, representing an end to an era of rock-bottom interest rates.

Going into 2023, central banks could continue this shift towards hawkish policies as inflation remains aggressively high.

The Role of Energy Prices

Driven by the war in Ukraine, energy inflation is pushing up the cost of living around the world.

Since October 2020, an index of global energy prices—made up of crude oil, natural gas, coal, and propane—has increased drastically.

Compared to the 2021 average, natural gas prices in Europe are up sixfold. Real European household electricity prices are up 78% and gas prices have climbed even more, at 144% compared to 20-year averages.

Amid global competition for liquefied natural gas supplies, price pressures are likely to stay high, even though they have fallen recently. Other harmful consequences of the energy shock include price volatility, economic strain, and energy shortages.

“The world is in the midst of the first truly global energy crisis, with impacts that will be felt for years to come”.

-Fatih Birol, executive director of the IEA

Double-Digit Inflation: Will it Last?

If history is an example, taming rising prices could take at least a few years yet.

Take the sky-high inflation of the 1980s. Italy, which managed to combat inflation faster than most countries, brought down inflation from 22% in 1980 to 4% in 1986.

If global inflation rates, which hover around 9.8% in 2022, were to follow this course, it would take at least until 2025 for levels to reach the 2% target.

It’s worth noting that inflation was also highly volatile over this decade. Consider how inflation fell across much of the rich world by 1981 but shot up again in 1987 amid higher energy prices. Federal Reserve chair Jerome Powell spoke to the volatility of inflation at their November meeting, indicating that high inflation has a chance of following a period of low inflation.

While the Federal Reserve projects U.S. inflation to fall closer to its 2% target by 2024, the road ahead could still get a lot bumpier between now and then.

All the Metals We Mined in 2021

“If you can’t grow it, you have to mine it” is a famous saying that encapsulates the importance of minerals and metals in the modern world.

From every building we enter to every device we use, virtually everything around us contains some amount of metal.

The above infographic visualizes all 2.8 billion tonnes of metals mined in 2021 and highlights each metal’s largest end-use using data from the United States Geological Survey (USGS).

Why Do We Mine So Much Iron Ore?

Iron ore accounted for 93% of the metals mined in 2021, with 2.6 billion tonnes extracted from the ground. It’s important to note that this is ore production, which is typically higher than metal production since metals are extracted and refined from ores.

With 98% of it converted into pig iron to make steel, iron ore is ubiquitous in our lives. Steel made from iron ore is used in construction, transportation, and household appliances, and it’s likely that you encounter something made out of it every day, especially if you live in a city.

Due to its key role in building infrastructure, iron ore is one of the most important materials supporting urbanization and economic growth.

Industrial Metals

Industrial metals are largely used in steelmaking, construction, chemical manufacturing, and as alloying agents. In 2021, the world mined over 181 million tonnes of these metals.

*Represents refinery/smelter production.

Aluminum accounted for nearly 40% of industrial metal production in 2021. China was by far the largest aluminum producer, making up more than half of global production. The construction industry uses roughly 25% of annually produced aluminum, with 23% going into transportation.

Chromium is a lesser-known metal with a key role in making stainless steel stainless. In fact, stainless steel is usually composed of 10% to 30% of chromium, enhancing its strength and corrosion resistance.

Copper, manganese, and zinc round out the top five industrial metals mined in 2021, each with its own unique properties and roles in the economy.

Technology and Precious Metals

Technology metals include those that are commonly used in technology and devices. Compared to industrial metals, these are usually mined on a smaller scale and could see faster consumption growth as the world adopts new technologies.

*Represents refinery/smelter production.

The major use of rhenium, one of the rarest metals, is in superalloys that are critical for engine turbine blades in aircraft and gas turbine engines. The petroleum industry uses it in rhenium-platinum catalysts to produce high-octane gasoline for vehicles.

In terms of growth, clean energy technology metals stand out. For example, lithium production has more than doubled since 2016 and is set to ride the boom in EV battery manufacturing. Over the same period, global rare earth production more than doubled, driven by the rising demand for magnets.

Indium is another interesting metal on this list. Most of it is used to make indium tin oxide, an important component of touchscreens, TV screens, and solar panels.

The Metal Mining Megatrend

The world’s material consumption has grown significantly over the last few decades, with growing economies and cities demanding more resources.

Global production of both iron ore and aluminum has more than tripled relative to the mid-1990s. Other metals, including copper and steel, have also seen significant consumption growth.

Today, economies are not only growing and urbanizing but also adopting mineral-intensive clean energy technologies, pointing towards further increases in metal production and consumption.