HOT WIRE: Inflation Expectations

02/08/2019 IEWC

IEWC Newsletters

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Inflation Expectations

US consumer prices in November were 2.2% higher than the November 2017 level and prices are expected to rise through 2019. However, the rate of inflation will slow through the majority of the year. A slowing in the rise of transportation prices will likely contribute to slowing inflation rates throughout the consumer sector by reducing shipping costs. While we are not expecting deflation during this cycle, consider ensuring that your budgets reflect slowing in the pace of rise for prices. If your costs decline, use this opportunity to improve margins, but ensure that your prices remain competitive.

On the production side, US producer prices in November were up 1.6% from the same month in 2017. Inflation will persist through at least 2019. However, the rate of rise has begun to slow, and we expect.... [read more]

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  • Readers' Forum
  • An Analysis of the Slowdown in the Chinese Industrial Economy
  • Eastern Europe Industrial Production
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