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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
1๐Ÿ‡ธ๐Ÿ‡ธ South Sudan-11.6%Dec 2022
2๐Ÿ‡ฒ๐Ÿ‡ด Macau 0.8%Nov 2022
3๐Ÿ‡จ๐Ÿ‡ณ China1.8%Dec 2022
4๐Ÿ‡ญ๐Ÿ‡ฐ Hong Kong SAR1.8%Nov 2022
5๐Ÿ‡ด๐Ÿ‡ฒ Oman2.1%Nov 2022
6๐Ÿ‡ต๐Ÿ‡ฆ Panama2.1%Dec 2022
7๐Ÿ‡ธ๐Ÿ‡จ Seychelles2.5%Dec 2022
8๐Ÿ‡ป๐Ÿ‡บ Vanuatu2.7%Mar 2022
9๐Ÿ‡น๐Ÿ‡ผ Taiwan2.7%Dec 2022
10๐Ÿ‡จ๐Ÿ‡ญ Switzerland2.8%Dec 2022
11๐Ÿ‡ฑ๐Ÿ‡ฎ Liechtenstein2.8%Dec 2022
12๐Ÿ‡ง๐Ÿ‡ฏ Benin2.8%Dec 2022
13๐Ÿ‡ฒ๐Ÿ‡ป Maldives2.8%Nov 2022
14๐Ÿ‡ณ๐Ÿ‡ช Niger3.1%Dec 2022
15๐Ÿ‡ง๐Ÿ‡ณ Brunei3.1%Nov 2022
16๐Ÿ‡ง๐Ÿ‡ด Bolivia3.2%Nov 2022
17๐Ÿ‡ฐ๐Ÿ‡ผ Kuwait3.2%Nov 2022
18๐Ÿ‡ธ๐Ÿ‡ฆ Saudi Arabia3.3%Dec 2022
19๐Ÿ‡ฐ๐Ÿ‡ญ Cambodia3.6%Oct 2022
20๐Ÿ‡ซ๐Ÿ‡ฏ Fiji3.6%Dec 2022
21๐Ÿ‡ช๐Ÿ‡จ Ecuador3.7%Dec 2022
22๐Ÿ‡ฏ๐Ÿ‡ต Japan3.8%Nov 2022
23๐Ÿ‡ฑ๐Ÿ‡พ Libya3.8%Nov 2022
24๐Ÿ‡ง๐Ÿ‡ฒ Bermuda3.8%Oct 2022
25๐Ÿ‡ง๐Ÿ‡ญ Bahrain3.9%Nov 2022
26๐Ÿ‡ฒ๐Ÿ‡พ Malaysia4.0%Nov 2022
27๐Ÿ‡ต๐Ÿ‡ธ Palestine4.1%Dec 2022
28๐Ÿ‡ฎ๐Ÿ‡ถ Iraq4.2%Nov 2022
29๐Ÿ‡ฏ๐Ÿ‡ด Jordan4.4%Dec 2022
30๐Ÿ‡น๐Ÿ‡ฏ Tajikistan4.5%Nov 2022
31๐Ÿ‡ป๐Ÿ‡ณ Vietnam4.6%Dec 2022
32๐Ÿ‡ง๐Ÿ‡น Bhutan4.6%Nov 2022
33๐Ÿ‡น๐Ÿ‡ฟ Tanzania4.8%Dec 2022
34๐Ÿ‡ณ๐Ÿ‡จ New Caledonia4.9%Dec 2022
35๐Ÿ‡ฐ๐Ÿ‡ท South Korea5.0%Dec 2022
36๐Ÿ‡ฎ๐Ÿ‡ฑ Israel5.3%Dec 2022
37๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg5.4%Dec 2022
38๐Ÿ‡ธ๐Ÿ‡ฟ Swaziland5.5%Oct 2022
39๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia5.5%Dec 2022
40๐Ÿ‡ฌ๐Ÿ‡ฆ Gabon5.7%Oct 2022
41๐Ÿ‡จ๐Ÿ‡ฎ Ivory Coast5.7%Nov 2022
42๐Ÿ‡ช๐Ÿ‡ธ Spain5.7%Dec 2022
43๐Ÿ‡ฎ๐Ÿ‡ณ India5.7%Dec 2022
44๐Ÿ‡ง๐Ÿ‡ท Brazil5.8%Dec 2022
45๐Ÿ‡น๐Ÿ‡ญ Thailand5.9%Dec 2022
46๐Ÿ‡ซ๐Ÿ‡ท France5.9%Dec 2022
47๐Ÿ‡ณ๐Ÿ‡ด Norway5.9%Dec 2022
48๐Ÿ‡ถ๐Ÿ‡ฆ Qatar5.9%Dec 2022
49๐Ÿ‡ฉ๐Ÿ‡ฏ Djibouti6.1%Sep 2022
50๐Ÿ‡ธ๐Ÿ‡ด Somalia6.1%Dec 2022
51๐Ÿ‡น๐Ÿ‡น Trinidad and Tobago6.2%Sep 2022
52๐Ÿ‡ต๐Ÿ‡ฌ Papua New Guinea6.3%Sep 2022
53๐Ÿ‡ต๐Ÿ‡ท Puerto Rico6.3%Nov 2022
54๐Ÿ‡จ๐Ÿ‡ฆ Canada6.3%Dec 2022
55๐Ÿ‡ง๐Ÿ‡ธ Bahamas6.5%Sep/22
56๐Ÿ‡ง๐Ÿ‡ฟ Belize6.5%Nov 2022
57๐Ÿ‡บ๐Ÿ‡ธ U.S.6.5%Dec 2022
58๐Ÿ‡ฆ๐Ÿ‡ผ Aruba6.6%Nov 2022
59๐Ÿ‡ธ๐Ÿ‡ฌ Singapore6.7%Nov 2022
60๐Ÿ‡น๐Ÿ‡ฑ East Timor6.7%Nov 2022
61๐Ÿ‡ฆ๐Ÿ‡ช UAE6.8%Jun 2022
62๐Ÿ‡ณ๐Ÿ‡ฆ Namibia6.9%Dec 2022
63๐Ÿ‡ฌ๐Ÿ‡พ Guyana6.9%Nov 2022
64๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand7.2%Sep 2022
65๐Ÿ‡ฟ๐Ÿ‡ฆ South Africa7.2%Dec 2022
66๐Ÿ‡ฌ๐Ÿ‡ท Greece7.2%Dec 2022
67๐Ÿ‡ฑ๐Ÿ‡ท Liberia7.2%Sep 2022
68๐Ÿ‡ฆ๐Ÿ‡บ Australia7.3%Sep 2022
69๐Ÿ‡ฒ๐Ÿ‡น Malta7.3%Dec 2022
70๐Ÿ‡ธ๐Ÿ‡ป El Salvador7.3%Dec 2022
71๐Ÿ‡ฆ๐Ÿ‡ฑ Albania7.4%Dec 2022
72๐Ÿ‡จ๐Ÿ‡ป Cape Verde7.6%Dec 2022
73๐Ÿ‡จ๐Ÿ‡ฒ Cameroon7.7%Sep 2022
74๐Ÿ‡จ๐Ÿ‡ซ Central African Republic7.7%Nov 2022
75๐Ÿ‡น๐Ÿ‡ฌ Togo7.7%Dec 2022
76๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico7.8%Dec 2022
77๐Ÿ‡ฉ๐Ÿ‡ด Dominican Republic7.8%Dec 2022
78๐Ÿ‡จ๐Ÿ‡ท Costa Rica7.9%Dec 2022
79๐Ÿ‡จ๐Ÿ‡พ Cyprus7.9%Dec 2022
80๐Ÿ‡ฒ๐Ÿ‡ฑ Mali8.0%Nov 2022
81๐Ÿ‡ณ๐Ÿ‡ต Nepal8.1%Nov 2022
82๐Ÿ‡ต๐Ÿ‡ญ Philippines8.1%Dec 2022
83๐Ÿ‡ต๐Ÿ‡พ Paraguay8.1%Dec 2022
84๐Ÿ‡ง๐Ÿ‡ง Barbados8.2%Oct 2022
85๐Ÿ‡ฎ๐Ÿ‡ช Ireland8.2%Dec 2022
86๐Ÿ‡บ๐Ÿ‡พ Uruguay8.3%Dec 2022
87๐Ÿ‡ฒ๐Ÿ‡ฆ Morocco8.3%Nov 2022
88๐Ÿ‡ฆ๐Ÿ‡ฒ Armenia8.3%Dec 2022
89๐Ÿ‡ต๐Ÿ‡ช Peru8.5%Dec 2022
90๐Ÿ‡ฑ๐Ÿ‡ธ Lesotho8.5%Oct 2022
91๐Ÿ‡ฉ๐Ÿ‡ฟ Algeria8.6%Nov 2022
92๐Ÿ‡ฉ๐Ÿ‡ช Germany8.6%Dec 2022
93๐Ÿ‡ฉ๐Ÿ‡ฐ Denmark8.7%Dec 2022
94๐Ÿ‡ง๐Ÿ‡ฉ Bangladesh8.7%Dec 2022
95๐Ÿ‡ซ๐Ÿ‡ด Faroe Islands8.8%Sep 2022
96๐Ÿ‡ซ๐Ÿ‡ฎ Finland9.1%Dec 2022
97๐Ÿ‡ฐ๐Ÿ‡ช Kenya9.1%Dec 2022
98๐Ÿ‡ฐ๐Ÿ‡พ Cayman Islands9.2%Sep 2022
99๐Ÿ‡ฌ๐Ÿ‡น Guatemala9.2%Dec 2022
100๐Ÿ‡ฌ๐Ÿ‡ผ 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 countryโ€™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 interplayโ€”among a host of other factorsโ€”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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Visualizing Global Gold Production Over 200 Years

Although the practice of gold mining has been around for thousands of years, itโ€™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 worldโ€™s greatest ever goldfields.

South Africaโ€™s annual gold production peaked in 1970 at 1,002 tonnesโ€”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 worldโ€™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 countriesโ€”China, Russia, and Australia, with each producing over 300 tonnes of the precious metal.

RankCountry2022E Gold Production, tonnes% of Total
#1๐Ÿ‡จ๐Ÿ‡ณ China33011%
#2๐Ÿ‡ท๐Ÿ‡บ Russia32010%
#3๐Ÿ‡ฆ๐Ÿ‡บ Australia32010%
#4๐Ÿ‡จ๐Ÿ‡ฆ Canada2207%
#5๐Ÿ‡บ๐Ÿ‡ธ United States1705%
#6๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico1204%
#7๐Ÿ‡ฐ๐Ÿ‡ฟ Kazakhstan1204%
#8๐Ÿ‡ฟ๐Ÿ‡ฆ South Africa1104%
#9๐Ÿ‡ต๐Ÿ‡ช Peru1003%
#10๐Ÿ‡บ๐Ÿ‡ฟ Uzbekistan1003%
#11๐Ÿ‡ฌ๐Ÿ‡ญ Ghana903%
#12๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia702%
-๐ŸŒ 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 worldโ€™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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