Inflation Rates (CPI YoY)

Inflation is the rate at which the general level of prices is rising. The most well known indicator of inflation is the Consumer Price Index (CPI) which measures the average price of consumer goods and services purchased by households. High rates of inflation are often associated with fast growing economies where the demand for goods and services is higher that the country’s productive capacity. The fight against inflation is done by central banks which control the money supply by increasing or decreasing short term interest rates. For instance, the Governing Council of the European Central Bank aims at keeping annual inflation under 2% to promote price stability and sustainable growth.

Latest News on Inflation

European Inflation Drops
Published: 1/6/2009 5:33:10 AM By: TradingEconomics.com, Bloomberg

Europe’s inflation rate fell to the lowest in more than two years in December as oil prices plunged and consumer spending slumped, increasing the scope for the European Central Bank to reduce borrowing costs further.

Japan Inflation Rises Slightly
Published: 12/29/2008 8:11:17 AM By: TradingEconomics.com, Bloomberg

Japan’s inflation rose at the slowest pace in seven months in November as oil and commodity costs tumbled and the deepening recession weakened demand.

Canada's Core Inflation Unexpectedly Accelerates
Published: 12/19/2008 5:21:27 AM By: TradingEconomics.com, Bloomberg.com

Canada's annual inflation excluding energy and other volatile items unexpectedly accelerated in November on a jump in food prices, potentially making it harder for the Bank of Canada to keep cutting interest rates.

European Inflation Rate Declines
Published: 12/17/2008 6:24:40 AM By: TradingEconomics.com, Bloomberg.com

Europe’s inflation rate fell the most in almost two decades last month as oil prices plunged, giving the European Central Bank more leeway to cut interest rates.

U.S. CPI Fall 1.7% in November
Published: 12/16/2008 5:47:20 AM By: TradingEconomics.com, Bloomberg.com

The cost of living in the U.S. fell in November by the most on record, as the price of gasoline and other energy costs plunged.

UK Inflation Falls to 4.1%
Published: 12/16/2008 5:16:05 AM By: TradingEconomics.com, Financial Times

Inflation fell sharply last month on the back of falling petrol prices but it remains far above the government’s target, forcing Mervyn King, governor of the Bank of England, to write another letter on Tuesday explaining why inflation remains so high and what the Bank is doing to bring it down.

China’s Inflation Slows
Published: 12/11/2008 7:27:28 AM By: TradingEconomics.com, Bloomberg.com

China’s inflation cooled to the weakest pace in almost two years, giving the central bank room to cut interest-rates and shore up growth in the world’s fourth-largest economy.

Swiss Inflation Rate Drops
Published: 12/2/2008 5:32:35 AM By: TradingEconomics.com, Bloomberg.com

Switzerland’s inflation rate dropped the most in 15 years in November as the price of oil declined, giving the central bank more leeway to bolster the economy.

Japan Inflation Slows
Published: 11/28/2008 8:54:11 AM By: TradingEconomics.com, Bloomberg.com

Japan’s inflation slowed for a second month in October as oil and commodity prices tumbled, providing relief to cash-strapped households in a recession.

Europe Inflation Rate Drops
Published: 11/28/2008 8:03:32 AM By: TradingEconomics.com, Bloomberg.com

Europe’s inflation rate fell by the most in almost two decades and unemployment increased, adding to pressure on the European Central Bank to continue cutting interest rates to battle the recession.