Top 10 Countries With the Highest Inflation Rate
Americans enjoy the stability of the dollar, and many probably do not know how much trouble inflation can have in less stable economies around the world. In this selection are highlighted the 10 countries with the highest inflation in 2014, according to Statistica. Inflation refers to the increase in money supply and monetary expansion, which characterizes the reason for rising prices. Certain economists, such as those of the Austrian School, have a preference for this meaning, rather than the definition of inflation by rising prices. In this way, for example, certain scholars of the 1920s in the United States made reference to inflation, even though prices did not increase in that period. However, popularly, the term inflation has its use as a price increase, unless an alternative term is expressly detailed. Another distinction is also made when there are internal and external effects of inflation. In an external way, inflation is translated more by the devaluation of the local currency in relation to the others, and in an internal way, it is expressed more in the increase of the volume of money, and increase of prices.
10. LIBERIA – 11.43%
Liberia suffered a nightmare in 2014, as the country was at the center of the ebola outbreak in Africa. When workers and farmers abandoned their jobs out of fear, the country’s delicate economy plunged into chaos. Liberia has reached tenth position in this selection of the 10 countries with the highest inflation in the world and today it is among the 10 poorest on the planet .
9. UKRAINE – 11.43%
Ukraine is another country that has had an exceptionally unstable year. Political protests, a displaced government, Russian annexation of the Crimea and a war between the new Ukrainian government and pro-Russian fighters wreaked havoc on the country’s currency.
8. ERITREA – 12.26%
The African nation has had a rapidly expanding economy in recent years, bolstered by gold and silver mining in the region. However, 2014 was the difficult year for the country’s currency, Eritrea being eighth in this selection of the 10 highest inflation countries in the world.
7. MONGOLIA – 14.1%
Mongolia’s economy has been growing rapidly in recent years, but declining foreign investment, and coal exports have cooled the economy in the year 2014.
6. GHANA – 15.73%
Housing, water, electricity, gas and other fuels have seen price peaks in Ghana in 2014, and weakened the country’s currency, with Ghana being sixth in this selection of the 10 highest inflation countries in the world.
5. BELARUS – 18.58%
Panic over hyperinflation led to government capital controls in Belarus in 2014, as the decline in the Russian ruble swept Belarus down as well.
4. MALAWI – 19.57%
Inflation soared in Malawi in the year 2014, when food prices skyrocketed due to a freeze in aid of $ 150 million from Malawi’s top donors. From the very independence of the United Kingdom in 1964, this country is officially and legally, according to the constitution, and still in practice, multiparty presidential republic and representative democracy, in which the head of state and government is characterized as president of the Republic. Malawi has as its largest city and still capital city of Lilongwe, which features international airport, Kamuzu museum, important tourism destination of the nation.
3. ISLAMIC REPUBLIC OF IRAN – 19.85%
High gas prices, high interest rates, high power and water prices, and stifling US sanctions have pushed Iran’s rate of inflation to nearly 20 percent by 2014.
2. SUDAN – 38.02%
Sudan’s economy has been struggling since South Sudan split in 2011, taking with it 75% of the country’s oil assets, with Sudan being second in the ranks of the 10 countries with the highest inflation in the world. A large part of the country’s history is summarized in ethnic conflicts, not counting 2 internal conflicts, and 2 civil wars between 1955 and 1972 and years 1983 and 2005. There are numerous cases of ethnic cleansing and slavery in Sudan And the Corruption Perceptions Index pointed the country as the fourth most corrupt nation on the planet. According to the second Global Hunger Index of 2013, the country has a GHI indicator value corresponding to 27 indicating that the nation faces “an alarming state of hunger”.
1. VENEZUELA – 64.26%
Things have gotten so bad in Venezuela that big companies are abandoning the ship. Reuters recently reported that after The Clorox Co shut down operations in Venezuela in 2014, and 3M Company is now considering an exit from Venezuela as well. Toy maker Mattel Inc is also considering closing deals in Venezuela due to escalating inflation and economic instability.