This week, wholesale price indices for December were published, which continue to signal downward dynamics.
So,
💠 Great Britain — the producer price index (base) in December increased by 0.1% (in November the increase was 0.6%) and for the year amounted to 12.4% (previous 13.5%) 〽️
💠 Spain — annual producer price index – 14.7%, in November there was 20% (in April – 47%). 〽️
The indicator is measured by the price dynamics month to month of the previous year, that is, December to December, November to November, etc.
💠 South Africa — producer price index in December did not change (in November the growth was 0.5%) and for the year amounted to 13.5% (previous value 15%)〽️
💠 Australia — annual producer price index — 5.8%, forecast was 6.3%. 〽️
💠 USA – basic prices for personal consumption in December decreased to 3.9% (previous value 4.7%)〽️
The decline has been observed for 4 months in a row, which may already indicate, with reservations, the formation of a certain trend, which entirely depends on energy prices.
In general, the current fight against inflation is somewhat reminiscent of the show “Weighted and Happy,” when people weighing 170 kg finally begin to lose 10-15 kg in a week. It seems like a lot, but normalization is still very far away, and the scope of the show is pushing the participants.
So it is here - we cannot admit that the fight of central banks against inflation is not unsuccessful, but it is still very far from “normal” values.
Another question is whether economies can cope with such a shock and whether everything is going according to the plans of central banks?
Author: Novel in macroeconomics
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