Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Inflation worldwide - statistics & facts
The outbreak of the U.S.-Israel war with Iran and the resulting spike in energy prices have led to fears of another sustained period of high inflation rates around the world. This comes after soaring inflation rates and galloping price levels had a direct impact on people’s lives in 2022 and 2023. Many struggled to make ends meet, and some were even forced to choose between a warm meal and a warm living room. Especially gas and electricity prices soared during this period, but also prices of food reached record heights. Inflation slowed through 2024 and 2025 and had just stabilized as the United States and Israel launched airstrikes against Iran in February 2026, meaning that many consumers still have not fully recovered from the previous price shocks. What led to the high inflation rates in 2022 and 2023? And what are the projections for inflation following the outbreak of the war in Iran in 2026?
How coronavirus and the war in Ukraine drove inflation
Global inflation rates started increasing even before the outbreak of the Russia-Ukraine war. As production and transport was brought to a halt in 2020 after the outbreak of COVID-19, it took time to bring production to a normal level as demands increased. Moreover, China's no-covid strategy, which was upheld until January 2023, with lockdown of complete cities such as Shanghai, resulted in continuing production disruptions. Furthermore, the Russian invasion of Ukraine affected especially certain food products such as wheat and corn, as well as energy sources such as natural gas.
What is inflation?
Inflation is the phenomenon of prices increasing for all goods. Most central banks have a target of low and constant inflation, generally between 1.5 and four percent per year. Hyperinflation, the extreme example of this phenomenon, can lead to total economic collapse as the currency loses value so quickly that it essentially becomes worthless.
Will the 2026 Iran war lead to another round of high inflation?
For a sustained period before the outbreak of the U.S.-Israel war with Iran in February 2026, inflation rates were stable in many key economies. However, the outbreak of the war and the subsequent closure of the Strait of Hormuz led to soaring oil prices, which have caused rising fuel, production, and transport costs, meaning higher consumer prices. A prolonged conflict could have severe consequences for the global economy. At the time of writing, it is too early to see the full impact of the war on inflation, but projections made before the outbreak saw average global inflation rates at 3.7 percent in 2026. Moreover, in many countries, for instance, Germany, India, and the U.S., inflation rates rose in March 2026.
