In Britain, almost nobody wants to talk about Brexit. Those who voted to leave the EU in 2016 have been stunned into embarrassed silence by Brexit's dismal failure to bring significant benefits, while the regular havoc it causes for businesses has left those who voted to remain quietly thinking "I told you so". Meanwhile, politicians on all sides fear opening old wounds and wasting political capital on something that seems too hard to fix.
Unfortunately, ignoring the many problems Brexit has brought won't stop it bringing more. Leaving the EU has already increased inflationary pressures in the United Kingdom several times. In the aftermath of the referendum, the pound plummeted in value, raising import costs. As numbers of immigrant workers from the EU fell, labour shortages caused wages in several sectors of the British economy to jump, and salary growth is still outstripping general price inflation. Now, with the much-delayed Brexit trade border having finally been put in place on 30 April, the arguably-excessive administrative fees imposed threaten to lift prices of numerous EU imports in Britain. Indeed, the extra costs and hassle seem likely to persuade at least some EU exporters not to bother shipping to the UK at all, where shortages of affected goods could raise prices further.
Despite these impacts (and some rapid rises in rental costs), the UK's annual inflation rate remains manageable at a latest reading of 3.2%, but the main thing keeping it down is the economy's weak domestic demand and GDP growth. Brexit is a major factor behind these trends containing the cost of living, but they can hardly be described as 'dividends'.
High-inflation countries (annual CPI 10%+)
| Country |
CPI % |
Data month |
Trend |
IMF 2024 forecast % |
| Angola |
28.2 |
Apr-24 |
▲ Rising |
22.0 |
| Argentina |
289.4 |
Apr-24 |
▲ Rising |
249.8 |
| Burundi |
14.0 |
Mar-24 |
▼ Falling |
22.0 |
| Congo DR |
46.8 |
Dec-23 |
▲ Rising |
17.2 |
| Cuba |
31.3 |
Dec-23 |
► Steady |
n/a |
| Egypt |
32.5 |
Apr-24 |
▼ Falling |
32.5 |
| Ethiopia |
23.3 |
Apr-24 |
▼ Falling |
25.6 |
| Gambia |
14.9 |
Mar-24 |
▼ Falling |
15.1 |
| Ghana |
25.0 |
Apr-24 |
► Steady |
22.3 |
| Haiti |
26.7 |
Mar-24 |
▲ Rising |
23.0 |
| Iran |
35.8 |
Feb-24 |
▼ Falling |
37.5 |
| Laos |
24.9 |
Apr-24 |
► Steady |
21.5 |
| Lebanon |
70.4 |
Mar-24 |
▼ Falling |
n/a |
| Liberia |
10.5 |
Jan-24 |
► Steady |
6.3 |
| Malawi |
31.8 |
Mar-24 |
► Steady |
27.9 |
| Myanmar |
28.6 |
Jun-23 |
▲ Rising |
15.0 |
| Nigeria |
33.2 |
Mar-24 |
▲ Rising |
26.3 |
| Pakistan |
17.3 |
Apr-24 |
▼ Falling |
24.8 |
| Sierra Leone |
41.7 |
Mar-24 |
▼ Falling |
39.1 |
| South Sudan |
22.5 |
Mar-24 |
▲ Rising |
54.8 |
| Surinam |
26.8 |
Mar-24 |
▼ Falling |
20.7 |
| Syria |
139.6 |
Dec-23 |
▼ Falling |
n/a |
| Turkey |
69.8 |
Apr-24 |
► Steady |
59.5 |
| Venezuela |
67.8 |
Mar-24 |
▼ Falling |
100.0 |
| Zambia |
13.8 |
Apr-24 |
► Steady |
11.4 |
| Zimbabwe |
57.5 |
Apr-24 |
▲ Rising |
561.0 |
Argentina has the highest inflation in the world and it continues to rise, reaching an annual rate of 289.4% in April (see table above). The cost of living has risen so fast and for so long that existing banknotes are becoming increasingly valueless. To help consumers cope with cash purchases, the central bank this month introduced 10,000-peso notes into circulation. They are five times the value of the next largest note available, but even they are worth only USD 11 at current exchange rates. How long before a 20,000-peso note is needed?