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.
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.