Despite persistent worries about “money printing” and the Fed’s actions, inflation has remained benign in the USA. But you might be surprised to notice that this isn’t merely a US phenomenon. It’s actually a global trend.
Figure 1 shows an overview of global inflation rates. I’ve taken 5 major regions/countries to show the recent downward trend in inflation rates. Japan is leading the way into a full blown deflation at -0.9% while the UK tops the chart at 2.8%. The USA rounds out the middle of the pack at 1.5% and is expected to show further signs of disinflation in the coming months.
The low inflation is a global phenomenon.
Chart via Orcam Investment Research:
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.