One of the ways we look at inflation around the world is by taking a simple average of 33 different countries year-over-year percentage change in CPI. By this measure, in January, year-over-year change in World CPI fell to it’s lowest level since November 2009....
World CPI (based on the average year-over-year change in 33 countries) ticked up slightly in November from 1.76% to 1.9%. Meanwhile, World PPI (based on the average year-over-year change in 22 countries) ticked up slightly as well but still remains negative in November....
Inflation is low around the world. According to our simple average of 33 CPIs (and 22 PPIs) inflation has been falling for the past four months. Not surprising then, inflation surprises are negative as well....
Most people are now very familiar with Citi’s Economic Surprise Index as it frequently cited in reports or in the financial press. What doesn’t get cited nearly as much is the Citi Inflation Surprise Index....
To get an idea of what the approximate ”inflation temperature” is around the world, we do a very simple exercise of averaging the year-over-year percentage change in CPI and PPI in a variety of countries around the world. We do our best to capture every...
Over the last four years, the derived inflation expectation of 30 year US Treasury bonds have moved in tandem with US Dollar. When the USD falls, inflation expectations rise, and when the USD rises, inflation expectations fall. Since mid-September, the US Dollar Index has fallen...
Inflation in the Spain and Italy is plunging at rates reminiscent of 2008-2009. From StreetAccount:Draghi says ECB guidance allows rate cuts on volatility: Bloomberg cited comments from ECB President Draghi, who said that the central bank’s pledge to maintain rates at low levels explicitly allows...
