Tatton Teaser: Global Price Inflation
Posted 24 November 2022
High inflation is a dominant concern for markets but investors were comforted when October US consumer price rises were shown to be a little less than expected.
Meanwhile, the prices that businesses pay and pass on are varying hugely across the world, as the chart shows. Europe is still feeling the huge impact of high energy costs, but businesses have been able to pass some of it on to others.
Meanwhile, China’s businesses have faced less input cost pressure but have seen demand being worse. Their prices have started to fall, compared to a year ago (and that’s in local currency terms).
The good news is that China’s output goes across the world (and the cost of shipping is now lower as well!) Chinese goods are now not the source of pressure on people’s wallets.