Oil & Inflation
Today the UK releases April’s inflation data. As Chart 1 shows the consumer price index is rising by 2.8%y/y – above the Bank of England’s 2% target. In contrast inflation rates in other advanced economies are running uniformly below target. US core Private Consumption Expenditure prices are increasing by 1.1%y/y against the 2.5% threshold that would induce the Federal Reserve to consider raising interest rates. Canada’s headline inflation rate is only 0.4%y/y. Japan’s exfood CPI is still declining by 0.5%y/y. The Eurozone’s headline CPI inflation is well below the European Central Bank’s 2% target at 1.2%y/y. Switzerland’s headline CPI is declining by 0.6%y/y and Sweden’s by 0.5%y/y. As Chart 2 shows only Norway’s inflation at 1.9%y/y is rising towards Norges Bank’s 2.5% target.
Click here to read the full report: UBS