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Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services.
Consequently, inflation also reflects an erosion in the purchasing power of money - a loss of real value in the internal medium of exchange and unit of account in the economy.
Let's take a look at the inflation rate around the world.
Source: Business Insider
India
Inflation target: N/A
May's inflation rate (WPI): 7.55 per cent
Morgan Stanley's 12 month forecast rate: 7.1 per cent
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Argentina
Inflation target: 15.5-24.2 per cent
Last month's inflation rate: 9.8 per cent
Morgan Stanley's 12 month forecast rate: 10.3 per cent
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Australia
Inflation target: 2-3 per cent
Last month's inflation rate: 1.6 per cent
Morgan Stanley's 12 month forecast rate: 2.7 per cent
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Brazil
Inflation target: 4.5+/-2.0 per cent
Last month's inflation rate: 5.0 per cent
Morgan Stanley's 12 month forecast rate: 5.7 per cent
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Canada
Inflation target: 1-3 per cent
Last month's inflation rate: 1.9 per cent
Morgan Stanley's 12 month forecast rate: 1.7 per cent
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Chile
Inflation target: 3+/-1 per cent
Last month's inflation rate: 3.1 per cent
Morgan Stanley's 12 month forecast rate: 3.2 per cent
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China
Inflation target: N/A
Last month's inflation rate: 3.0 per cent
Morgan Stanley's 12 month forecast rate: 3.2 per cent
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Colombia
Inflation target: 3+/-1 per cent
Last month's inflation rate: 3.4 per cent
Morgan Stanley's 12 month forecast rate: 3.6 per cent
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Czech Republic
Inflation target: 2.0+/-1 per cent
Last month's inflation rate: 3.2 per cent
Morgan Stanley's 12 month forecast rate: 1.7 per cent
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Hong Kong
Inflation target: N/A
Last month's inflation rate: 4.7 per cent
Morgan Stanley's 12 month forecast rate: 4.5 per cent
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Hungary
Inflation target: 3.0 per cent
Last month's inflation rate: 5.3 per cent
Morgan Stanley's 12 month forecast rate: 3.6 per cent
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Indonesia
Inflation target: 5+/-1.0 per cent
Last month's inflation rate: 4.5 per cent
Morgan Stanley's 12 month forecast rate: 5.1 per cent
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Israel
Inflation target: 1-3 per cent
Last month's inflation rate: 2.1 per cent
Morgan Stanley's 12 month forecast rate: 2.1 per cent
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Japan
Inflation target: 0-2 per cent
Last month's inflation rate: 0-2 per cent
Morgan Stanley's 12 month forecast rate: 0-2 per cent
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Malaysia
Inflation target: 2.0 per cent
Last month's inflation rate: 1.9 per cent
Morgan Stanley's 12 month forecast rate: 3.2 per cent
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Mexico
Inflation target: 3+/-1 per cent
Last month's inflation rate: 3.9 per cent
Morgan Stanley's 12 month forecast rate: 3.5 per cent
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New Zealand
Inflation target: 1-3 per cent
Last month's inflation rate: 1.6 per cent
Morgan Stanley's 12 month forecast rate: N/A
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Nigeria
Inflation target: N/A
Last month's inflation rate: 12.8 per cent
Morgan Stanley's 12 month forecast rate: 11.3 per cent
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Norway
Inflation target: 2.5 per cent
Last month's inflation rate: 0.3 per cent
Morgan Stanley's 12 month forecast rate: N/A
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Peru
Inflation target: 2+/-1 per cent
Last month's inflation rate: 4.1 per cent
Morgan Stanley's 12 month forecast rate: 3.8 per cent
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Poland
Inflation target: 2.5 per cent
Last month's inflation rate: 3.6 per cent
Morgan Stanley's 12 month forecast rate: 2.8 per cent
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Romania
Inflation target: 3.0 per cent
Last month's inflation rate: 1.8 per cent
Morgan Stanley's 12 month forecast rate: 3.6 per cent
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Russia
Inflation target: 3.0 per cent
Last month's inflation rate: 3.6 per cent
Morgan Stanley's 12 month forecast rate: 6.5 per cent
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South Africa
Inflation target: 3-6 per cent
Last month's inflation rate: 6.1 per cent
Morgan Stanley's 12 month forecast rate: 5.4 per cent
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South Korea
Inflation target: 2-4 per cent
Last month's inflation rate: 2.5 per cent
Morgan Stanley's 12 month forecast rate: 2.7 per cent
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Sweden
Inflation target: 2.0 per cent
Last month's inflation rate: 1.3 per cent
Morgan Stanley's 12 month forecast rate: 2.2 per cent
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Switzerland
Inflation target: -2.0 per cent
Last month's inflation rate: 1.3 per cent
Morgan Stanley's 12 month forecast rate: N/A
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Taiwan
Inflation target: N/A
Last month's inflation rate: 1.7 per cent
Morgan Stanley's 12 month forecast rate: 1.0 per cent
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The United Kingdom
Inflation target: 2 per cent
Last month's inflation rate: 3.0 per cent
Morgan Stanley's 12 month forecast rate: 2.1 per cent
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The United States
Inflation target: 2.0 per cent
Last month's inflation rate: 1.9 per cent
Morgan Stanley's 12 month forecast rate: 2.0 per cent