According to modern economic theory, the optimal inflation level for developed countries is considered to be approximately 2-3% annually, while for developing countries it is 4-6%. This threshold is low enough for people and companies to make long-term plans, while also providing the central bank with room to maneuver by lowering interest rates to stimulate the economy during crises.
If rising inflation cannot be brought under control in time through a stricter monetary policy by the Central Bank (as is currently happening in Russia - ed.), inflation can spiral completely out of control and drag the economy into a long-term crisis. The most striking examples of this are Venezuela (inflation - 269,9%), Iran (42%), and Argentina (41%).
Modern.az presents countries with the highest and lowest inflation rates.
Top 5 countries with high inflation rates:
Venezuela - 269,9%
Republic of South Africa - 97,5%
Sudan - 87,2 percent
Iran - 42,4%
Argentina -41,3%
Burundi - 37,3%
Turkey - 34,9%
Top 5 countries with low inflation rates:
Panama- -0,1
Fiji - 0,1%
Qatar - 0,1%
Switzerland - 0,1%
