The latest readings on global inflation rates showed low global inflation. In fact, the majority of developed nations are experiencing a bout of disinflation as growth remains weak and many regions in the world suffer from excess capacity and high unemployment.
The latest update:
- USA: +1.5%
- China: +2.5%
- Japan: +1.5%
- UK: +2%
- EMU: +0.8%
I think it’s safe to say that this environment not only looks nothing like the 1970’s, but that low inflation is certainly more than a US phenomenon. It is also clear that all of the supposed “money printing” from QE didn’t stoke the inflation fire much, if at all.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.