Global Inflation Rates

This article has 13 comments:

•  
  bruin532

  Jun 22 07:45 AM
  What you fail to mention is the method that was used to compute these inflation figures, do the other countries deduct fuel and food?
•  
  Gmel

  Jun 22 10:24 AM

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  A lot of this depends on the health of your currency. If your country's currency gains in value -- as it did here in Canada last year -- then it makes everything imported cheaper to buy. Of course if your dollar is dropping like a stone -- such as in the USA -- then things get a lot more expensive to buy.
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  droskoph

  Jun 22 10:52 AM

  My Website
  Thank you.
•  
  JDog

  Jun 22 10:53 AM
  How does Japan have such low inflation especially given that its currency is so weak and interest rates are barely above zero?
•  
  DrBagel

  Jun 22 12:20 PM
  How can Saudi Arabia have more than double the US inflation rate if their currency is pegged to the USD?
•  
  19Larry42

  Jun 22 02:36 PM
  We are a small mfg and our costs have been going up a lot faster than 4.2%
•  
  Richard
  Schweitzer

  Jun 22 10:29 PM
  Bill Gross had some telling commentary in the June PIMCO Report on the point of an understated U S inflation rate.
  
  In fact the global inflation rate may be inaccurate.
  
  Try 7%. A good measure is the number of hours of work (usually at some median wage net of taxes - direct and indirect) is required to obtain the basics of given standards of living.
  
  Discl: Long YEN futures (Japan is not on this list!!)
•  
  Richard
  Schweitzer

  Jun 22 10:30 PM
  Correction: Japan IS on this list (next to bottom)
•  
  Richard
  Schweitzer

  Jun 22 10:32 PM
  Incidentally, It does not appear that the median of the list was based on any form of weighting.
•  
  toofan

  Jun 23 08:06 AM

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  DrBagel - Some price effects are country/location specific, real estate, fuel, subsidies - however such a big difference can only be explained that the real inflation data is being supressed. Everyone knows the methods of calculations have changed over the years and many items dropped or weightages changed. User 166668 has a point - ask/feel the pulse, the govt. is BS
•  
  somekid

  Jun 25 12:29 AM
  User 166668:
  
  The inflation rate given is for consumers. Producers typically experience the worst end of inflation, probably an average of 7.3%, if I were to venture a guess (or regurgitate what a very competent finance professor said last week). It's entirely possible that you are getting burn worse than that, depending on exactly what industry you are in and a million other variables.
  Being a small mfg. only adds to the burn due to economies of scale, decrease in demand for goods in general, and rising wages.
  
  Richard:
  definition of median:
  The midpoint of the range numbers that are arranged in order of value.
  Of course it did not take into account any sort of weight, because doing so would make it and average (mean) instead of a midpoint (the middle number).
  I'm not saying that knowing the median does us any good, just that it's not what you seem to think it is.
  
  Dr Bagel:
  Excellent point. China's currency is also pegged to the USD, but they are experiencing higher inflation (at least according to these numbers). China's government subsidizes prices to hold them steady, allowing them some control over inflation despite lacking control over their own monetary policy. However, they also have the ability to increase fuel prices 17-18% across the nation over night (they just did). I don't know if these numbers reflect that change, in fact I doubt it, but my point is the same as toofan's, nations with pegged currencies do not necessarily follow the base value.
  
  Aside from all that, who the heck can determine what a basket of goods should include for each country and come up with figures that can meaningfully compare one to another? I definitely agree with the general consensus that inflation is typically understated and inaccurate in my own country (US) and find it hard to imagine that even a minority of the rest of the world is capable of measuring their own.
  
  Also, unrelated, core inflation is meaningless. Perhaps some of you do know someone in the US who does not drive or use fuel, but everyone eats food.
  
  Then again, what do I know? I'm just somekid
•  
  Did U Think
  The Ponzi
  Scheme
  Would Last?

  Jun 25 02:19 AM
  Oh I feel so much better that we are better than a bunch of 3rd world countries. Our ridiculous inflation rate seems right at home with our new, pretty, bananna republic colored money. Why not just get Parket Brothers to replace the federal reserve and the treasury? Parker's monopoly money is just the right size for a smaller wallet.
•  
  map

  Jun 25 10:02 PM

  My Website
  What are you talking about? There is no absolutely difference between our country and the rest of the world. We are not "special." You are not special. I am not special.
  
  The world through the eyes of our English-language media is our own fantasy. If you want reality, learn a foreign language.
  
  
  On Jun 25 02:19 AM Did U Think The Ponzi Scheme Would Last? wrote:
  
  > Oh I feel so much better that we are better than a bunch of 3rd world
  > countries. Our ridiculous inflation rate seems right at home with
  > our new, pretty, bananna republic colored money. Why not just get
  > Parket Brothers to replace the federal reserve and the treasury?
  > Parker's monopoly money is just the right size for a smaller wallet.