About 84% of countries are expected to have lower headline (consumer price index) inflation in 2023 than in 2022.

According to the January 2023 World Economic Outlook report, global inflation is set to fall from 8.8% in 2022 (annual average) to 6.6% in 2023 and 4.3% in 2024––above pre-pandemic (2017–19) levels of about 3.5%.

“The projected disinflation partly reflects declining international fuel and nonfuel commodity prices due to weaker global demand. It also reflects the cooling effects of monetary policy tightening on underlying (core) inflation, which globally is expected to decline from 6.9% in the fourth quarter of 2022 (year over year) to 4.5% by the fourth quarter of 2023”.

“Still, disinflation will take time by 2024, projected annual average headline and core inflation will, respectively, still be above pre-pandemic levels in 82% and 86% of economies, it added.

Inflation to decline to 4.6% in advanced economies

In advanced economies, annual average inflation is projected to decline from 7.3% in 2022 to 4.6% in 2023 and 2.6% in 2024––above target in several cases.

Inflation to fall to 8.1% in emerging economies

In emerging market and developing economies, projected annual inflation declines from 9.9% in 2022 to 8.1% in 2023 and 5.5% in 2024, above the 4.9% pre-pandemic (2017–19) average.

Inflation to moderate to 8.6% in low-income developing countries

In low-income developing countries, inflation is projected to moderate from 14.2% in 2022 to 8.6% in 2024––still high, but close to the pre-pandemic average.