The BLS released the US Consumer Price Index (CPI) earlier this week and it came in at a hot 6.4% and yesterday the PPI index came out today at a blistering 7.1% but what about inflation around the world?
Sadly, inflation in most US trading partners went up. In Mexico, inflation went up from 7.82% to 7.91%; in China 1.80% to 2.10%; in Germany 8.6% to 8.7%; in Taiwan 2.71% to 3.04%; in South Korea 5.0% to 5.20%; Vietnam 4.55% to 4.89%
Despite central banks around the world raising rates, the top trading partner inflation index has barely moved downward and was flat from December to January.
Looking at the US top 3 trading partners:
Inflation went up in Mexico, stayed flat in Canada and went up in China. The Federal Reserve has its work cut out for it and we suspect more aggressive rate hikes may be a possibility. The next Fed meeting is about a month away in mid-March so stay tuned, stay profitable and stay solvent…