Here’s a bit more color on the inflation front. This time we look at a broader set of data. The chart below shows inflation indicators from Europe, China, the USA and UK. As you can see, this morning’s low inflation and disinflation trend isn’t just a US phenomenon. The entire global economy is suffering from a bout of low inflation. More via Also Sprach Analyst:
“This is the updated chart of the year-on-year inflation for a few selected major economies. After reaching their peaks last year, inflation has been trending lower, and remains rather muted in the recent months.
Of course, with the US drought, some would worry that inflation would start to tick higher again, as we are now expecting for China as pork prices are likely to rise. In any case, however, we think it is going to be just as transitory as it was.”