Hints and tips:
...Kuijs said the deflator China used for industrial production appeared to track the producer price index, a gauge of factory gate prices that is heavily influenced by global commodity prices....
...More crucially, a weaker GDP deflator negatively affects the trends in corporate revenues and profits....
...This means the GDP deflator — the broadest measure of price movements in the economy — remained in deflationary territory, another sign of excess capacity in the economy....
...Were ticket prices linked to inflation (as measured by the GDP deflator), one would be paying roughly £35 to see Waters. As it is, prices start at around seven times that....
...The indications from the more timely CPI report — which the Fed is interested in, although it prefers to look at the personalised consumption deflator — is that the US economy is benefiting from a positive...
...Some economists believe that when calculating real GDP growth from nominal data, Beijing is able to adjust the deflator, the broadest measure of prices in the economy, to hit its targets....
...Economists say the gross domestic product deflator, a broad measure of prices in the economy, has had its longest deflationary streak since the late 1990s....
...The core PCE deflator is expected to have risen 3 per cent year over year, compared with 3.2 per cent in November....
...In the chart, you can see the equivalent data for the personal consumption deflator series, with forecasts again compiled by the Philadelphia Fed....
...In the US, the equivalent measure — the Federal Reserve’s favoured personal consumption expenditure deflator — was just 1.9 per cent with a headline rate of 2 per cent....
...Of course, the Fed really targets the personal consumption deflator (not the CPI) and the inflation in housing is both surprisingly sticky and likely to come down because the most recent new rents are not...
...The figures to watch are the personal consumption expenditure deflator figures (PCE) preferred by the FOMC to the consumer price index (CPI) measure because officials think they are more comprehensive, more...
...Resolving this needs both structural reform and a supportive macro environment A chart that matters Don’t be surprised on Thursday if US inflation, as measured by the core personal consumption expenditure deflator...
...Annual inflation measured by the US personal consumption expenditure deflator was 3.5 per cent in August, having come down from a peak of 7.1 per cent in June 2022....
And China the great deflator
...So if the personal consumption expenditure deflator, that’s a bit of a mouthful to say that....
...has banned the mention of deflation — “Deflation does not and will not exist in China,” according to a stats bureau spokesperson — China is, well: JPMorgan points out that headline CPI, PPI and the GDP deflator...
...One morsel of good news: the GDP deflator, the price index used to convert nominal to real GDP, hit 3.4 per cent in the second quarter, the highest since 1981. But the best news came in wages....
...Unit profit growth now accounts for more than half of GDP deflator growth, with compensation per employee growth explaining a little over a third....
...Using the employment cost index (the highest-quality measure of wages) and the GDP deflator (the price index used to determine real GDP), real wages are just a shade lower than they were at the start of...
...I had a look anyway, using the closest deflator I could find, the producer price index for durable consumer goods....
...These two charts from Barclays show how the Harmonised Index of Consumer Prices is running 3 percentage points hotter than the GDP deflator, which has a drag from import prices of about 8 percentage points...
...Besides their direct inflationary effects, these supply shocks drove a wedge between consumer prices and gross domestic product deflators, induced unrealistic wage demands and resultant profit contractions...
...Diplomats from the frugal countries said that having won substantial increases to their rebates — which are worth €7.6bn a year in total — they would now push to ensure that a 2 per cent “deflator” is applied...
...In an article explaining the problem, the ONS said: “The effect of the new deflator would increase the volume of output of the telecommunications sector and will probably increase the headline volume measure...
International Edition