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Which Countries Have the Lowest Inflation?

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Which Countries Have the Lowest Inflation?

Investors are bracing for longer inflation.

The Federal Reserve indicated that more restrictive monetary policy is in the cards amid strong employment gains. In Europe, while inflation has fallen, it is still far above the 2% target. Across the Euro area inflation is estimated to have reached 8.5% in January.

At the same time, some countries have managed to tamp down inflation. Slower growth, cheaper import costs, and foreign exchange policy are some of the factors keeping inflation subdued.

As price pressures rattle global markets, the above infographic maps inflation rates globally using data from Trading Economics, focusing in on the countries with the lowest inflation levels.

World’s Lowest Inflation Rates

Many of the lowest inflation rates around the world are located in Asia, including Macau, China, Hong Kong, and Taiwan. In this region, widespread lockdowns strained growth and consumer spending, lessening inflationary pressures. Last year, Chinese consumers saved $2.2 trillion in bank deposits during these restrictions which were lifted earlier this year.

Inflation in the region was impacted by several other factors. Earlier on in the pandemic, Asian countries including China were less impacted by rising food costs, services inflation, and supply-chain disruptions, unlike what was seen in North America and Europe.

But now as China has reopened, some signs of inflation are beginning to appear. Food prices are up 4.8% annually in December, and hotel rates are rising.

RankCountry / RegionInflation Rate, Year-Over-YearDate
1🇸🇸 South Sudan-11.6%Dec 2022
2🇲🇴 Macau 0.8%Nov 2022
3🇨🇳 China1.8%Dec 2022
4🇭🇰 Hong Kong SAR1.8%Nov 2022
5🇴🇲 Oman2.1%Nov 2022
6🇵🇦 Panama2.1%Dec 2022
7🇸🇨 Seychelles2.5%Dec 2022
8🇻🇺 Vanuatu2.7%Mar 2022
9🇹🇼 Taiwan2.7%Dec 2022
10🇨🇭 Switzerland2.8%Dec 2022
11🇱🇮 Liechtenstein2.8%Dec 2022
12🇧🇯 Benin2.8%Dec 2022
13🇲🇻 Maldives2.8%Nov 2022
14🇳🇪 Niger3.1%Dec 2022
15🇧🇳 Brunei3.1%Nov 2022
16🇧🇴 Bolivia3.2%Nov 2022
17🇰🇼 Kuwait3.2%Nov 2022
18🇸🇦 Saudi Arabia3.3%Dec 2022
19🇰🇭 Cambodia3.6%Oct 2022
20🇫🇯 Fiji3.6%Dec 2022
21🇪🇨 Ecuador3.7%Dec 2022
22🇯🇵 Japan3.8%Nov 2022
23🇱🇾 Libya3.8%Nov 2022
24🇧🇲 Bermuda3.8%Oct 2022
25🇧🇭 Bahrain3.9%Nov 2022
26🇲🇾 Malaysia4.0%Nov 2022
27🇵🇸 Palestine4.1%Dec 2022
28🇮🇶 Iraq4.2%Nov 2022
29🇯🇴 Jordan4.4%Dec 2022
30🇹🇯 Tajikistan4.5%Nov 2022
31🇻🇳 Vietnam4.6%Dec 2022
32🇧🇹 Bhutan4.6%Nov 2022
33🇹🇿 Tanzania4.8%Dec 2022
34🇳🇨 New Caledonia4.9%Dec 2022
35🇰🇷 South Korea5.0%Dec 2022
36🇮🇱 Israel5.3%Dec 2022
37🇱🇺 Luxembourg5.4%Dec 2022
38🇸🇿 Swaziland5.5%Oct 2022
39🇮🇩 Indonesia5.5%Dec 2022
40🇬🇦 Gabon5.7%Oct 2022
41🇨🇮 Ivory Coast5.7%Nov 2022
42🇪🇸 Spain5.7%Dec 2022
43🇮🇳 India5.7%Dec 2022
44🇧🇷 Brazil5.8%Dec 2022
45🇹🇭 Thailand5.9%Dec 2022
46🇫🇷 France5.9%Dec 2022
47🇳🇴 Norway5.9%Dec 2022
48🇶🇦 Qatar5.9%Dec 2022
49🇩🇯 Djibouti6.1%Sep 2022
50🇸🇴 Somalia6.1%Dec 2022
51🇹🇹 Trinidad and Tobago6.2%Sep 2022
52🇵🇬 Papua New Guinea6.3%Sep 2022
53🇵🇷 Puerto Rico6.3%Nov 2022
54🇨🇦 Canada6.3%Dec 2022
55🇧🇸 Bahamas6.5%Sep/22
56🇧🇿 Belize6.5%Nov 2022
57🇺🇸 U.S.6.5%Dec 2022
58🇦🇼 Aruba6.6%Nov 2022
59🇸🇬 Singapore6.7%Nov 2022
60🇹🇱 East Timor6.7%Nov 2022
61🇦🇪 UAE6.8%Jun 2022
62🇳🇦 Namibia6.9%Dec 2022
63🇬🇾 Guyana6.9%Nov 2022
64🇳🇿 New Zealand7.2%Sep 2022
65🇿🇦 South Africa7.2%Dec 2022
66🇬🇷 Greece7.2%Dec 2022
67🇱🇷 Liberia7.2%Sep 2022
68🇦🇺 Australia7.3%Sep 2022
69🇲🇹 Malta7.3%Dec 2022
70🇸🇻 El Salvador7.3%Dec 2022
71🇦🇱 Albania7.4%Dec 2022
72🇨🇻 Cape Verde7.6%Dec 2022
73🇨🇲 Cameroon7.7%Sep 2022
74🇨🇫 Central African Republic7.7%Nov 2022
75🇹🇬 Togo7.7%Dec 2022
76🇲🇽 Mexico7.8%Dec 2022
77🇩🇴 Dominican Republic7.8%Dec 2022
78🇨🇷 Costa Rica7.9%Dec 2022
79🇨🇾 Cyprus7.9%Dec 2022
80🇲🇱 Mali8.0%Nov 2022
81🇳🇵 Nepal8.1%Nov 2022
82🇵🇭 Philippines8.1%Dec 2022
83🇵🇾 Paraguay8.1%Dec 2022
84🇧🇧 Barbados8.2%Oct 2022
85🇮🇪 Ireland8.2%Dec 2022
86🇺🇾 Uruguay8.3%Dec 2022
87🇲🇦 Morocco8.3%Nov 2022
88🇦🇲 Armenia8.3%Dec 2022
89🇵🇪 Peru8.5%Dec 2022
90🇱🇸 Lesotho8.5%Oct 2022
91🇩🇿 Algeria8.6%Nov 2022
92🇩🇪 Germany8.6%Dec 2022
93🇩🇰 Denmark8.7%Dec 2022
94🇧🇩 Bangladesh8.7%Dec 2022
95🇫🇴 Faroe Islands8.8%Sep 2022
96🇫🇮 Finland9.1%Dec 2022
97🇰🇪 Kenya9.1%Dec 2022
98🇰🇾 Cayman Islands9.2%Sep 2022
99🇬🇹 Guatemala9.2%Dec 2022
100🇬🇼 Guinea Bissau9.4%Nov 2022

*Inflation rates based on latest available data.

Globally, one outlier is South Sudan. Political instability and violence have depressed growth and inflation, which stood at -11.6% in December. As it faces a severe humanitarian crisis, the country has the lowest inflation rate worldwide.

Oil-producing nation Oman has also seen low inflation, at 2.1%. One reason for this is that the Omani rial is pegged to the U.S. dollar, keeping the currency anchored. Inflation has remained moderate over the last decade in the country.

The Country With the Lowest Inflation, by Region

In Europe, Switzerland has the lowest inflation rate, at 2.8%, or roughly one-third of the Euro area’s. It is also the lowest rate in the OECD. The country’s strong currency has shielded it from inflationary pressures and high import prices.

Meanwhile, Swiss production prices have risen marginally above inflation, to 4.1% annually in mid-2022. Last year, the Swiss central bank raised interest rates for the first time since 2007 from -0.75% to -0.25% following 20 years of deflation.

Countries With the Lowest Inflation by Region

Panama has the lowest rate in Latin America. The dollarization of the Panamanian balboa has helped quash price pressures. In July, the government regulated the price of 72 items to keep the cost of living from rising after three weeks of protests as inflation climbed as high as 5.2% during the course of 2022.

With the lowest inflation in Asia, Macau witnessed the tourism industry fall off a cliff given lockdown measures, and the economy saw both its GDP and inflation collapse in 2022. Its real GDP is projected to have fallen close to 30% for the year.

Future Gazing

The IMF estimates that 84% of countries around the world will have lower inflation than last year. By 2024, both headline and core inflation are projected to remain above pre-pandemic levels at 4.1%.

Opposing forces of China’s reopening and weaker global growth could offset inflationary pressures, yet this interplay—among a host of other factors—remains to be seen.

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Real Assets

Charted: The Value Gap Between the Gold Price and Gold Miners

While gold prices hit all-time highs, gold mining stocks have lagged far behind.

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Line chart comparing gold price and gold mining stocks since 2000.

Gold Price vs. Gold Mining Stocks

This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of trusted sources.

Although the price of gold has reached new record highs in 2024, gold miners are still far from their 2011 peaks.

In this graphic, we illustrate the evolution of gold prices since 2000 compared to the NYSE Arca Gold BUGS Index (HUI), which consists of the largest and most widely held public gold production companies. The data was compiled by Incrementum AG.

Mining Stocks Lag Far Behind

In April 2024, gold reached a new record high as Federal Reserve Chair Jerome Powell signaled policymakers may delay interest rate cuts until clearer signs of declining inflation materialize.

Additionally, with elections occurring in more than 60 countries in 2024 and ongoing conflicts in Ukraine and Gaza, central banks are continuing to buy gold to strengthen their reserves, creating momentum for the metal.

Traditionally known as a hedge against inflation and a safe haven during times of political and economic uncertainty, gold has climbed over 11% so far this year.

According to Business Insider, gold miners experienced their best performance in a year in March 2024. During that month, the gold mining sector outperformed all other U.S. industries, surpassing even the performance of semiconductor stocks.

Still, physical gold has outperformed shares of gold-mining companies over the past three years by one of the largest margins in decades.

YearGold PriceNYSE Arca Gold BUGS Index (HUI)
2023$2,062.92$243.31
2022$1,824.32$229.75
2021$1,828.60$258.87
2020$1,895.10$299.64
2019$1,523.00$241.94
2018$1,281.65$160.58
2017$1,296.50$192.31
2016$1,151.70$182.31
2015$1,060.20$111.18
2014$1,199.25$164.03
2013$1,201.50$197.70
2012$1,664.00$444.22
2011$1,574.50$498.73
2010$1,410.25$573.32
2009$1,104.00$429.91
2008$865.00$302.41
2007$836.50$409.37
2006$635.70$338.24
2005$513.00$276.90
2004$438.00$215.33
2003$417.25$242.93
2002$342.75$145.12
2001$276.50$65.20
2000$272.65$40.97

Among the largest companies on the NYSE Arca Gold BUGS Index, Colorado-based Newmont has experienced a 24% drop in its share price over the past year. Similarly, Canadian Barrick Gold also saw a decline of 6.5% over the past 12 months.

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200 Years of Global Gold Production, by Country

Global gold production has grown exponentially since the 1800s, with 86% of all above-ground gold mined in the last 200 years.

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global gold production

Visualizing Global Gold Production Over 200 Years

Although the practice of gold mining has been around for thousands of years, it’s estimated that roughly 86% of all above-ground gold was extracted in the last 200 years.

With modern mining techniques making large-scale production possible, global gold production has grown exponentially since the 1800s.

The above infographic uses data from Our World in Data to visualize global gold production by country from 1820 to 2022, showing how gold mining has evolved to become increasingly global over time.

A Brief History of Gold Mining

The best-known gold rush in modern history occurred in California in 1848, when James Marshall discovered gold in Sacramento Valley. As word spread, thousands of migrants flocked to California in search of gold, and by 1855, miners had extracted around $2 billion worth of gold.

The United States, Australia, and Russia were (interchangeably) the three largest gold producers until the 1890s. Then, South Africa took the helm thanks to the massive discovery in the Witwatersrand Basin, now regarded today as one of the world’s greatest ever goldfields.

South Africa’s annual gold production peaked in 1970 at 1,002 tonnes—by far the largest amount of gold produced by any country in a year.

With the price of gold rising since the 1980s, global gold production has become increasingly widespread. By 2007, China was the world’s largest gold-producing nation, and today a significant quantity of gold is being mined in over 40 countries.

The Top Gold-Producing Countries in 2022

Around 31% of the world’s gold production in 2022 came from three countries—China, Russia, and Australia, with each producing over 300 tonnes of the precious metal.

RankCountry2022E Gold Production, tonnes% of Total
#1🇨🇳 China33011%
#2🇷🇺 Russia32010%
#3🇦🇺 Australia32010%
#4🇨🇦 Canada2207%
#5🇺🇸 United States1705%
#6🇲🇽 Mexico1204%
#7🇰🇿 Kazakhstan1204%
#8🇿🇦 South Africa1104%
#9🇵🇪 Peru1003%
#10🇺🇿 Uzbekistan1003%
#11🇬🇭 Ghana903%
#12🇮🇩 Indonesia702%
-🌍 Rest of the World1,03033%
-World Total3,100100%

North American countries Canada, the U.S., and Mexico round out the top six gold producers, collectively making up 16% of the global total. The state of Nevada alone accounted for 72% of U.S. production, hosting the world’s largest gold mining complex (including six mines) owned by Nevada Gold Mines.

Meanwhile, South Africa produced 110 tonnes of gold in 2022, down by 74% relative to its output of 430 tonnes in 2000. This long-term decline is the result of mine closures, maturing assets, and industrial conflict, according to the World Gold Council.

Interestingly, two smaller gold producers on the list, Uzbekistan and Indonesia, host the second and third-largest gold mining operations in the world, respectively.

The Outlook for Global Gold Production

As of April 25, gold prices were hovering around the $2,000 per ounce mark and nearing all-time highs. For mining companies, higher gold prices can mean more profits per ounce if costs remain unaffected.

According to the World Gold Council, mined gold production is expected to increase in 2023 and could surpass the record set in 2018 (3,300 tonnes), led by the expansion of existing projects in North America. The chances of record mine output could be higher if gold prices continue to increase.

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