Saturday, 24 September 2005

Inflation accelerates

Inflation is accelerating around the world, no thanks to high oil prices.

On Thursday, Statistics Canada reported that Canada's consumer price index (CPI) was up 2.6 percent in August compared to a year ago.

Yesterday, the German state of Hesse reported an inflation rate of 2.2 percent for September, its highest rate in four years. Also yesterday, the Federal Statistical Office of Germany reported that the index of import prices rose by 4.7 percent from a year ago, the same rate as in the previous month, and by 0.9 percent from July.

Yesterday also saw the Hong Kong Census & Statistics Department report that the territory's CPI rose 1.4 percent in August over a year earlier, up from July's 1.3 percent rise.

In comparison, the 0.7 percent rise in Singapore's CPI in August compared to a year ago, as reported by the Department of Statistics, is small. However, it represents a sharp 0.5 percent rise from July.

1 comment:

Himalaya Wolf said...

With such a bundle of worrying CPI data, can we draw the conclusion that inflation is coming back finally after Paul Volcker suppressed it successfully in the Nineteen Eighties with high interest rates even if we know China has been churning out lots of cheap but good quality daily necessities to all around the World given its endless supply of cheap labor....???? I believe the main culprit should be high crude oil prices but can it hold after the wave of speculative wave subsides....

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