Gavekal Capital: No Inflation Pressure Worldwide

Tuesday, November 5, 2013

No Inflation Pressure Worldwide

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 major country that produces these economic statistics. In all, we average the year-over-year percentage in CPI in 33 countries and the PPI in 22 counties. As the two charts below indicate inflation is low on a global basis.

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