Research Reports

Navigating Inflation Trends & Strategies: Select G20 Economies

Effective inflation management is a critical priority for achieving robust economic growth and ensuring global economic stability. High inflation has become a serious concern globally, particularly in the aftermath of the Covid-19 pandemic and the Russia-Ukraine war. This led to governments around the world respond with various fiscal and monetary policy interventions to combat high inflation. Inflation management has particularly emerged as a foremost challenge among global policymakers in the current global setting with rising global uncertainties in the face of several geopolitical tensions. Given this backdrop, this note examines inflation trends and inflation management policies in select G20 economies, during and post the Covid-19 pandemic. As the G20 represents 85% of global GDP and 75% of world trade, the diverse strategies employed by these economies have critical implications for the global economy. The analysis covers a range of economies at different stages of development, to account for how inflation impacted these economies differentially as per their unique characteristics. Specifically, the analysis looks at advanced markets including the US, Germany and the EU, emerging markets including China and India, and the African Union, which includes several least developed markets. Further, the analysis throws light on key factors that drove high inflation in the recent past globally as well across the selected regions. The note offers key insights from the analysis that can be useful for policymakers in shaping future inflation management strategies.