The past year has been unprecedented for inflation. Both supply chain issues and global conflicts have led to high single-digit to double-digit inflation in nearly every country.
When periods of high inflation occur, we often see similar questions from global companies such as:
We are launching a series of blog posts focused on inflation to help you understand how it is varying globally and to assist you with answering some of these common questions.
Below is an infographic showing the overall inflation AIRINC measured by country for July 2021 to July 2022. Countries highlighted in the cooler colors (dark green and teal) are experiencing the least amount of inflation (between 0 and 12%). Countries highlighted in the warmer colors (tan, yellow, and orange) are experiencing the highest inflation globally (between 12% and 85%).
Western Nations Experience Inflation 2-3x Higher Than Usual
Example countries: United States, Canada, United Kingdom, Spain, Germany, Portugal, Netherlands, and Sweden
What this means for you and your talent:
Solution: Access to proactive reporting that helps you understand what host country inflation is and how much an employee’s allowance is increasing (COLA change reports)
Solution: Access to proactive reporting that helps you understand what host country inflation is and how much an employee’s allowance is increasing (COLA change reports)
Solution: Supplement your traditional salary benchmarking with inflation data to determine if there are locations where you need to increase wages more than the normal 2-4%
Countries with the Highest Inflation (Yellow and Orange)
Example countries: Venezuela, Argentina, Angola, Ethiopia, Turkey, and Sri Lanka
What this means for your talent:
Solution: Additional updates for assignments into these countries paired with COLA change reports to ensure expats understand what is driving the changes in their allowances
Solution: More frequent compensation reviews for employees out of these countries or conduct some analysis on how your talent is being impacted by inflation
Solution: More frequent compensation reviews for employees out of these countries or conduct some analysis on how your talent is being impacted by inflation
Subscribe to our blog for more updates on inflation!