This strange new world of disinflation continues. Yesterday’s CPI reading in the USA came in at 1.7% which was down from 2%. Core inflation (minus food and energy) was also 1.7%. Most interestingly, this isn’t just a conspiracy by the BLS to manipulate the way inflation is gauged. We know that because inflation isn’t just low in the USA. It is low everywhere in the world.
The latest global readings on inflation show broad disinflation. The most notable of which is in Europe where we’re fast approach a full on deflation. Japan is the upside surprise in recent months with several 3%+ readings, but still nothing to write home about.