G20 Annual Inflation Rates in October 2021: Argentina Registers Highest Rate

Several countries worldwide are experiencing economic recovery after being impacted by the Covid-19 pandemic. However, this recovery could potentially slow down due to rising prices of goods and services, or excessively high inflation.

G20 countries experienced year-on-year (yoy) inflation in October 2021. Argentina and Turkey remained the countries with the highest inflation rates.

Based on data from the Organisation for Economic Co-operation and Development (OECD), Argentina experienced inflation of 52.1% yoy in October 2021. However, Argentina's annual inflation decreased by 0.4 percentage points from the previous month's 52.5%.

Turkey experienced inflation of 19.9% (yoy) in October 2021, up 0.3 percentage points from the previous month's 19.6%. Sadly, Argentina and Turkey had already experienced economic instability even before the Covid-19 pandemic.

Meanwhile, Indonesia recorded inflation of 1.7% yoy in October 2021. This figure places Indonesia's inflation as the fourth lowest among G20 countries. Indonesia's annual inflation increased by 0.1 percentage points from the previous month's 1.6%.

The majority of G20 member countries experienced an increase in inflation (yoy) in October 2021. Only Japan and Argentina experienced a slowdown in inflation. Japan recorded annual inflation of 0.1%, down 0.1 percentage points from the previous month's 0.2%.

China recorded the highest inflation increase. Annual inflation in China in October 2021 was 1.5%, up 0.8 percentage points from the previous month's 0.7%.

The OECD predicts that G20 inflation will continue to rise for two years. Quoting the BBC, prices of goods in G20 member countries will rise faster than pre-pandemic levels for at least two years.

The UK is expected to experience inflation of around 3% by the end of 2022, the highest among other developed countries. Conversely, inflation is expected to fall in the United States, France, and Germany.

For information, the G20 is a multilateral cooperation forum consisting of 19 countries and the European Union. Indonesia will be the presidency or host of the G20 meeting in 2022.