Economists predict that global inflation will remain elevated at least until 2028, Bloomberg reported on Tuesday, citing a new survey that could heighten market concerns about persistent price pressures.

The survey, conducted by the German Ifo Institute and the Institute for Swiss Economic Policy, forecasts an average inflation rate of 3.5% in three years, only slightly below the 3.9% projected for 2025.

The quarterly study, published on Tuesday, gathered insights from nearly 1,400 experts across 125 countries in early December.

"Inflation expectations remain above the inflation targets of many central banks," indicated Niklas Potrafke, director of the Ifo Center for Public Finance and Political Economy.

"Major interest rate cuts are unlikely given these inflation expectations."

Recent data from the United States and the eurozone have intensified concerns that consumer price growth may prove more persistent than anticipated, prompting a global shift in expectations for interest-rate reductions, particularly for the Federal Reserve.

The survey highlighted that inflation expectations have risen notably in North America. For 2025, experts predict an average rate of 2.6%, up 0.2 percentage points from the previous survey conducted in the third quarter. Inflation is projected to reach 2.8% in 2026 and 2.9% in 2028.

In Western Europe, economists anticipate a 2% inflation rate by 2028, while forecasting 2.7% for Southern Europe and 2.5% for Northern Europe.

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