Authors: Madhu Manivannan, Caitlin Man & Sydney Hartstonge
Explaining changes in cost of living indices to your assignees and other stakeholders can be a real challenge, especially when there is economic turbulence at play.
Generally, global inflation has continued the trend of stability, although high inflation and volatile currencies have continued to disrupt economies across the world.
We’ve highlighted some key movers below, providing explanations of the impact of price changes and exchange rate movements over the last six months.
Argentina
What has impacted the cost of living?
Although inflation in Buenos Aires is moderate, it has continued to slow since peaking at 129% in March 2024, primarily driven by drastic cuts to government spending. From September 2024 to March 2025, prices increased by 11%, while the peso depreciated by 6% against the euro and 11% against the US dollar.
What does this mean for expats?
Inflation and currency devaluation will largely offset each other so assignees are likely to only see small changes in their indices depending on their home location.
Burundi
What has impacted the cost of living?
Political tensions in neighbouring countries have threatened Burundi’s economic stability, simultaneously contending with the effects of the Democratic Republic of the Congo’s severe refugee crisis, as well as deteriorating relations with Rwanda. Prices in Bujumbura have risen by 10% over the last 6 months. The Burundian franc has seen a 1% depreciation against the US dollar and a 4% appreciation against the euro.
What does this mean for expats?
With inflation outpacing the changes in currency, assignees will see a moderate rise in their indices.
China
What has impacted the cost of living?
Low domestic demand, increasing competition in consumer goods, and enhanced monetary policy support by the People’s Bank of China has kept inflation in China at a persistently low level, with prices increasing by only 0.2% between September 2024 and March 2025. Within the same period the Chinese yuan has strengthened against the euro by 3% and weakened against the US dollar by 2%.
What does this mean for expats?
Most assignees in China will experience minimal to no changes to their indices due to the offsetting of inflation and currency movements in the country.
Eurozone
What has impacted the cost of living?
The euro fell 5% against the US dollar over the six months to March, while inflation across the region remained subdued, with average price increases of less than 1%.
What does this mean for expats?
Most assignees in this region will experience small changes to their indices as currency movements outpace inflation.
Iran
What has impacted the cost of living?
Between September 2024 and March 2025, Iran’s economy continued to feel the impact of renewed US sanctions, with inflation remaining high. In this period, prices increased by 11%, while the Iranian rial depreciated by 32% against the euro and 35% against the US dollar.
What does this mean for expats?
Assignees are likely to see their indices fall, as the weakening currency outweighs the impact of inflation.
Japan
What has impacted the cost of living?
Prices in Japan continue to increase, largely across food items, with inflation rising by 2% in the six months to March. In the same period, the Japanese yen has depreciated by 2% against the US dollar, although it did rise by 2% against the euro.
What does this mean for expats?
Most assignees in Japan are likely to see little to no change to their indices, as inflation and currency movements will offset each other.
Malawi
What has impacted the cost of living?
Inflation in Malawi has dramatically increased in 2025, having been heavily impacted by food insecurity and droughts. Between September 2024 and March 2025 prices have increased by 20%, meanwhile the Malawi kwacha has strengthened by 5% against the euro and showed no movement against the US dollar.
What does this mean for expats?
Malawi’s high inflation heavily outweighs the currency movement, therefore assignees will see their indices rise.
Nigeria
What has impacted the cost of living?
The economic situation in Nigeria remains unstable, with Lagos experiencing a 14% increase in prices over the past six months. The naira has also appreciated 6% against the US dollar and 12% against the euro.
What does this mean for expats?
Due to the combination of high inflation and an appreciating currency, assignees are likely to see their indices rise significantly.
South Sudan
What has impacted the cost of living?
South Sudan has long faced economic challenges, political instability, and regional conflict, all of which have kept inflation high, with prices rising by 40% in the six months to March. During the same period, the South Sudanese pound weakened by 31% against the euro and 35% against the US dollar.
What does this mean for expats?
Assignees are likely to see their indices rise slightly, as high inflation continues to outweigh the impact of the depreciating local currency.
Sweden
What has impacted the cost of living?
Inflation has remained low in Sweden, with prices increasing by 1% between September 2024 and March 2025. The Swedish krona has generally performed well, which has been attributed to Sweden’s robust public finances. In the same six month period, the krona has strengthened against the euro by 3% and weakened against the US dollar by 2%.
What does this mean for expats?
Most assignees in Sweden will experience little to no change to their indices as the currency movements and inflation rate largely offset each other.
Turkey
What has impacted the cost of living?
An overall slowdown in inflation has been supported by tight monetary policy, as well as a stabilising lira. However, prices have still risen by 14% over the six months to March 2025. In this period, the lira has depreciated by 2% against the euro.
What does this mean for expats?
As inflation currently outweighs the impact of the lira’s depreciation, assignees can expect their indices to increase.
UK
What has impacted the cost of living?
With business confidence and investment slowing in the UK alongside the Bank of England slashing interest rates, the past six months have seen prices rising marginally by 1%. The British pound has also weakened against the US dollar by 3% and strengthened against the euro by 2%.
What does this mean for expats?
Assignees are unlikely to see any large changes to their indices as currency movements only slightly outpace inflation.
USA
What has impacted the cost of living?
Inflation in the US has been on a gradual decline since its peak in September 2023 and has reached its lowest level thus far in March 2025 with prices increasing by only 1%. This has partially been driven by a cooling in demand and a decline in energy and fuel prices. Alongside low inflation the strength of the US dollar has increased too, appreciating by 5% against the euro within the six months.
What does this mean for expats?
Assignees in the US are likely to see their indices rise as the strengthening of the US dollar outweighs the low level of inflation.
Venezuela
What has impacted the cost of living?
After a period of relative stability, inflation in Venezuela has been triggered again due to the bolivar’s sharp depreciation. The bolivar has depreciated by 43% against the US dollar and 40% against the euro, and prices have increased by a staggering 67% since last September.
What does this mean for expats?
The high inflation significantly outweighs the currency movements and so assignees will see their indices rise significantly.
Post-survey developments
The information in this blog describes the changes up to the March 2025 Cost of Living Survey but in some countries circumstances can change quickly. That is why we carry out extra surveys for high inflation countries (see below) and publish regular blog posts on exchange rate and inflation changes around the world, so you can be prepared for anything.
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ECA's interim surveys
While inflation has fallen in much of the world there are still some countries where it remains very high and it is essential to have up-to-date information.
Fortunately for those managing assignees around the world, ECA surveys high inflation locations quarterly and in June 2025 we covered 8 countries.
We are currently undertaking interim surveys for the following countries due to high inflation expectations: Argentina, Burundi, Iran, Malawi, Myanmar, Nigeria, South Sudan Turkey, and Venezuela. The results will be available in July 2025.
FIND OUT MORE
If you need advice regarding currency fluctuations, or would like additional information or data on any of the locations included in our survey, please get in touch.
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