Which Countries Have the Highest Inflation in 2026?

TEMPO.CO, Jakarta - Global economic growth is expected to slow this year, but inflation remains a pressing concern in several parts of the world. Amid slowing global growth, rising borrowing costs, and ongoing geopolitical tensions, the highest inflation rates in the world remain concentrated in a handful of nations, where soaring prices continue to strain households and businesses.

The world’s highest inflation this year

Based on projections from the International Monetary Fund’s April 2026 World Economic Outlook, inflation rates vary dramatically across the globe. Venezuela is expected to record the highest annual average inflation rate at 387.4 percent. 

Several nations hit by the highest inflation include: 

1. Venezuela - 387.4%

2. Sudan - 75.1%

3. Iran - 68.9%

4. Argentina - 30.4%

5. Turkiye - 28.6%

6. Yemen - 26.5%

7. Malawi - 24.4%

8. Haiti - 23.5%

9. Bolivia - 20.7%

10. Myanmar - 19.0%

For multiple consecutive years, Venezuela is projected to record the highest inflation rate in the world, according to Trading Economics. While annual inflation eased to 524.5 percent in May 2026, the country continues to grapple with the lingering effects of a prolonged hyperinflation crisis that began in 2016.

Sudan continues to face severe inflationary pressures, fueled largely by the sharp depreciation of the Sudanese pound against foreign currencies. The economic crisis has been compounded by the conflict that erupted in April 2023, which devastated livelihoods across the country and left many people without jobs or businesses. As a result, poverty has surged, with an estimated 73 percent of Sudanese now living in poverty. 

Iran has experienced a sharp surge in inflation, with the annual rate reaching 77.2 percent between April and May 2026, according to the country's central bank. The figure marks Iran’s highest inflation level since 1942, while goods' prices rose even faster, with point-to-point inflation exceeding 113 percent. 

How does inflation affect purchasing power?

One of the most significant effects of inflation is the erosion of purchasing power. As prices rise over time, consumers can buy fewer goods and services with the same amount of money, reducing the value of their income and savings.

According to Investopedia, lower-income households are often hit the hardest, as they typically spend a larger share of their earnings on essential items and have fewer financial resources to absorb rising costs.

With inflation remaining a key concern across several economies in 2026, consumers are increasingly feeling the effects of higher prices on everyday essentials. But what happens when prices move in the opposite direction? For a deeper look at how inflation and deflation influence spending, savings, and economic growth, explore our breakdown of inflation vs deflation.

Read: ECB Raises Rates to Tackle Inflation Surge

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