Despite the implementation of historic U.S. tariffs, 2025 saw a surprising resilience in global markets, with average inflation cooling to 4.2%. However, the data reveals a world of economic extremes. On one end of the spectrum, Venezuela leads the world with a staggering inflation rate of 269.9%, compounded by severe currency depreciation and political upheaval. On the other end, China experienced an inflation rate of 0.0%, reflecting persistent deflationary pressures from excess manufacturing capacity and a cooling labor market.

In the United States, inflation continued its downward trajectory, landing at 2.7% as the economy successfully absorbed the impact of trade tariffs with less friction than analysts originally anticipated. Europe also saw a return to relative stability, with major economies like France and Italy reporting rates below 2%. This report explores these trends through the lens of IMF data, highlighting how cooling energy prices and shifting geopolitical sanctions are redrawing the global cost-of-living map. As the IMF projects a further dip to 3.7% in 2026, the focus shifts to whether emerging stimulus measures in Asia and evolving trade wars will reignite price pressures or usher in a period of sustained disinflation.