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Global Inflation Update – Continued Disinflation

Global disinflation has picked up pace in recent months and several regions of the global economy are now on the verge of a full blown deflation.

The latest readings on inflation are just about unanimous – there’s widespread disinflation, or a slowing rate of positive inflation. The latest reading out of the USA showed a stagnant, but well below historical average rate of 1.7%.  China’s rate of inflation has slowed from 2% to 1.6%.  The UK slowed sharply to 1.2% from 1.5%.  And the EMU is on the verge of deflation at 0.3%.  The one outlier of the major economic regions is Japan where the rate of inflation spiked following the currency devaluation due to Abenomics.