Hyperinflationary economies as at June 2026

The IMF World Economic Outlook (‘WEO’) report released on 14 April 2026 provides updated data in respect of current and projected levels of inflation. We have used this data in our assessment of whether an economy is considered hyperinflationary, together with the other qualitative factors in paragraph 3 of IAS 29, ‘Financial Reporting in Hyperinflationary Economies’. The most significant changes from the updates provided in November 2025 relate to the following: 

• Burundi and Sierra Leone are no longer considered to be hyperinflationary economies for periods ending on or after 30 June 2026.
• Zimbabwe was considered to be a hyperinflationary economy as at December 2025. Currently, there is a lack of reliable information to conclude whether it is no longer hyperinflationary as at 30 June 2026.

Hyperinflationary economies

After considering the WEO report and qualitative factors in paragraph 3 of IAS 29, entities with the currency of the following countries as their functional currency should apply IAS 29 as at June 2026:

• Argentina;
• Haiti;
• Islamic Republic of Iran;
• Lebanon;
• Malawi;
• South Sudan;
• Sudan;
• Turkey; and
• Venezuela.

The projected three-year cumulative inflation of the economies in the list above is expected to continue to exceed 100% during 2026.

Economies that will no longer be hyperinflationary as at June 2026

Burundi

The WEO report issued in April 2026 shows that the three-year cumulative inflation is expected to decrease to 87% at the end of 2026, and to 55% at the end of 2027. Local data shows a decreasing year-on-year and month-on-month inflation, with three-year cumulative inflation of 83% as at February 2026. Based on the above, entities with the currency of Burundi as their functional currency should stop applying IAS 29 for reporting periods from 30 June 2026 onwards.

Sierra Leone

The WEO report issued in April 2026 shows that the three-year cumulative inflation is expected to decrease to 29% at the end of 2026, and to 24% at the end of 2027. Local data shows a decreasing year-on-year and month-on-month inflation, with three-year cumulative inflation of 75% as at February 2026. Based on the above, entities with the currency of Sierra Leone as their functional currency should stop applying IAS 29 for reporting periods from 30 June 2026 onwards.

Other economies to be kept under review in 2026 and 2027

The following economies are not hyperinflationary, but they should be kept under review in 2026 and 2027:

• Egypt;
• Nigeria; and
• Yemen.

Egypt

The WEO report issued in April 2026 shows that three-year cumulative inflation is expected to be 68% by the end of 2026, with the expectation that it will further decrease to 45% by the end of 2027. Although the projections indicate that Egypt is not expected to become hyperinflationary in the foreseeable future, it continues to have high rates of inflation. Entities with the currency of Egypt as their functional currency should monitor developments of inflation during 2026 and 2027.

Nigeria

The WEO report issued in April 2026 shows an expected three-year cumulative inflation of 82% by the end of 2026, with the expectation that it will further decrease to 54% by the end of 2027. Although the projections indicate that Nigeria is not expected to become hyperinflationary in the foreseeable future, it continues to have high rates of inflation. Entities with the currency of Nigeria as their functional currency should monitor developments of inflation during 2026 and 2027.

Yemen

The WEO report issued in April 2026 does not include the period-end inflation data. Also, no reliably comparable three-year cumulative local data as of the end of 2026 is available. Based on the period average inflation data published in the WEO report, the three-year cumulative inflation is expected to increase to 94% in 2026 (82% in 2027). Although the projections indicate that Yemen is not expected to become hyperinflationary in the next year, it continues to have high rates of inflation. Entities with the currency of Yemen as their functional currency should monitor developments of inflation during 2026 and 2027.

Other potentially hyperinflationary economies (lack of reliable information)

Consistent and reliable inflation data is not currently available for the following countries:

• Afghanistan;
• Bolivia;
• Eritrea;
• Myanmar;
• Syrian Arab Republic;
• Sri Lanka; and
• Zimbabwe.

Entities with the currency of these countries should consider the information available at the reporting date to determine whether IAS 29 is applicable.

Zimbabwe

Zimbabwe was considered hyperinflationary as at December 2025. It transitioned to a new currency (ZWG) in April 2024. Since then, there has been limited data available to conclude whether the change to the new currency has had the desired effect of reducing inflation to a level at which Zimbabwe would no longer be considered hyperinflationary. Entities should carefully consider whether ZWG is their functional currency. Entities that have ZWG as their functional currency should analyse the local situation in concluding whether Zimbabwe is considered hyperinflationary for the purposes of applying the ZWG as at 30 June 2026. Impacted entities will need to monitor developments carefully.

Paragraph 4 of IAS 29 states that it is preferable for all entities that report in the currency of a hyperinflationary economy to apply the standard at the same date; and the standard should be applied as if the economy had always been hyperinflationary.