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.
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