«
Weak inflation suggests that slack remains in many advanced economies and monetary policy should continue to remain accommodative.
Not exact matches
A separate index by the Bank of Japan that strips away the effect of energy costs also showed
inflation slowing,
suggesting that
weak consumption and falling import costs are discouraging firms from raising prices for a broad range of goods.
China's consumer
inflation remained
weak in December, while price declines at the factory gate level continued to deepen,
suggesting weakness in the world's second - largest economy but giving policy makers more room to take easing measures.
For me the main information coming out of CPI
inflation data is that consumer demand relative to total production continues to be too
weak to drive up prices, something confirmed earlier this week by the August trade numbers, which failed to
suggest strong growth in domestic demand.
Wages are rising at about the same pace as
inflation, which is
weak by historical standards, and
suggests that households have limited spending power.
Our analysis of cycles and markets
suggests that the combination of
weaker growth and higher
inflation is not good for risk assets such as equities.