In this piece, we will take a look at the five countries with the lowest inflation rates in the world. If you want to take a look at the the current global macroeconomic environment and why inflation has become one of the hottest topics over this past year, head on over to 20 Countries With Lowest Inflation Rates In The World.
5. Republic of Costa Rica
Latest Inflation Estimate: 0.88%
The Republic of Costa Rica is a Central American country that is one of the most stable nations in the world. While annual inflation stood at 0.88% in May, year to March 2023 inflation was -1.36%. Costa Rica has a $68 billion economy and a GDP per capita of $13,090. It relies on a mix of industrial, agricultural, and other products to fuel its exports and earn foreign exchange.
4. Kingdom of Thailand
Latest Inflation Estimate: 0.53%
The Kingdom of Thailand is an Asian country. Its inflation of 0.53% in May 2023 beat estimates by a wide margin and stood at a 21 month low. The Thai economy is worth $574 billion and it is one of the biggest hubs of global tourism. The country also exports large amounts of agricultural products such as rice and sugar as well as manufactured products.
3. Republic of Panama
Latest Inflation Estimate: 0.2%
The Republic of Panama is a North and South American country. Recently, it imposed some restrictions for shipping through its famous canal due to drought problems. For the period between January and May 2023, inflation in Panama stood at 1.5%. However, even though inflation was quite low as a whole at 0.2% in May, the country experienced significant price increases in several parts of the consumer price index. For instance, housing and utilities prices jumped by 10.9% while food and alcohol grew by 4.2%.
2. Brunei Darussalam
Latest Inflation Estimate: 0.2%
Brunei Darussalam is a Southeast Asian country. It is one of the smallest countries in the world in terms of both its population and its area. Brunei has an $18.4 billion economy and a high GDP per capita of $42,939. Its month over month inflation fell by 0.5% in May 2023 but food inflation remained quite high at 2.8% when compared to the overall inflation rate of 0.2%. Brunei relies heavily on exporting oil and related products for its foreign exchange, lending the economy a degree of stability.
1. People’s Republic of China
Latest Inflation Estimate: 0.1%
The People’s Republic of China, or China, is the world’s most populous nation. It also has the second largest economy in nominal terms and the largest economy in purchasing power parity (PPP) terms. The Chinese economy is worth a whopping $19 trillion, coming second only to the economic giant that is the United States. However, the Chinese economy has been struggling as of late. This weakness has also translated into low inflation in the Chinese economy, as consumers are cautious about spending big and driving up prices. At the same time, the Chinese labor market is relatively cooler when compared to developed Western economies.
Disclosure: None. You can also take a look at 10 Best Organic Food and Farming Stocks To Buy and 20 Best Airlines in the World in 2023.
