Robert Insana, a financial analyst and commentator on CNBC’s “Power Lunch,” recently commented that there is more evidence of slowing inflation. He believes this has been noticed by other central banks around the world as well.
The Federal Reserve’s preferred measure of inflation, known as the Personal Consumption Expenditures Price Index (PCEPI), shows that price increases are slowing down. This index tracks changes in prices for goods and services consumed by households over time, such as food, clothing and medical care costs. The PCEPI rose just 1% year-over-year in April 2019 – its slowest rate since October 2015 – indicating that inflationary pressures may be easing off after several years of steady growth.
Insana believes this could have implications for monetary policy decisions made by central bankers across the globe who are looking to keep their economies growing at a healthy pace without risking runaway price increases or deflationary spirals caused by too much money chasing too few goods or services available to buy with it. He suggests they should take note of what is happening with US consumer prices when considering how aggressively they need to act going forward if they want to avoid an economic downturn due to either excessive inflation or deflationary forces being unchecked.
Read more at CNBC
