The Federal Reserve raised its target interest rate by another three-quarters of a percentage point on Wednesday, Nov. 2 in an effort to combat high inflation in the U.S.
Some people are wondering how inflation in the U.S. compares to other countries with similar economies around the world, including VERIFY reader Carson. They emailed the team to ask if inflation is actually worse in other countries compared to the U.S.
Are there other comparable economies with worse inflation than the U.S.?
- The International Monetary Fund (IMF)
- The Organisation for Economic Cooperation and Development (OECD)
- Tom Smith, an economist and professor of finance at Emory University's Goizueta Business School
Yes, there are other comparable economies with worse inflation than the U.S.
WHAT WE FOUND
The Consumer Price Index (CPI), calculated by the Bureau of Labor Statistics (BLS), is the most widely used measure of inflation in the U.S. It is designed to measure price changes on a “basket” of many everyday goods and services.
In September, the annual inflation rate in the U.S. remained near a 40-year high at 8.2%, CPI data show. But that’s nowhere near the highest in the world.
The International Monetary Fund (IMF) tracks the inflation rate monthly in most economies around the world. Inflation rates for September ranged from nearly 285% in Zimbabwe to just under 2% in Hong Kong.
Many countries with economies comparable to the U.S. have higher inflation rates as well.
The Organisation for Economic Cooperation and Development (OECD), a group that discusses and develops economic and social policy, is made up of about three dozen countries that have economies similar to the U.S.
OECD data show that the U.S. ranks No. 24 out of 36 countries for inflation rates.
Turkiye ranks highest among these 36 countries, with an annual inflation rate of over 83%.
Countries such as Germany, Chile and the United Kingdom had higher inflation rates than the U.S. in September. On the other hand, there are countries on this list with lower inflation rates, including Japan, Switzerland and Costa Rica.
In Europe, high energy costs resulting from the war in Ukraine are fueling record-high inflation, Tom Smith, economist and professor of finance at Emory University, told VERIFY’s partner station in Atlanta, WXIA.