G20 Inflation Tracker: August

The G20 brings together the world’s largest economies—including the U.S., China, India, Germany, and Brazil—which together account for 85% of global GDP and over 75% of global trade. Tracking inflation across this group offers a crucial window into global economic health and the direction of monetary policy.

Shifts in G20 inflation can influence interest rate decisions, trade dynamics, and growth trajectories, especially at a time marked by geopolitical uncertainty and slowing demand.

In August 2025, inflation across the G20 continued to show sharp contrasts:

Key Highlights:

• Argentina recorded 33.6%, the highest in the G20, even as monthly inflation eased to 1.9%.
• Turkey followed at 33%, reflecting persistent price pressures despite currency stabilisation efforts.
• The United States saw inflation rise to 2.9%, its highest since January.
• The United Kingdom continued to battle sticky inflation driven by elevated food prices.
• China slipped further into deflation (-0.4%), reinforcing domestic slowdown concerns.
• Australia’s inflation rose to 3.0%, the fastest pace in a year, though core inflation eased—keeping the Reserve Bank’s rate-cut path open.
• Most other G20 economies stayed within the 2–4% range, signalling broad price stability.

Source: National statistics offices of respective countries, FT, CNBC, Reuters.