Global | Inflation and Bottlenecks Chartbook. August 2023

Summary

Headline inflation has been trending down but recently this trend has halted. Core inflation remains sticky. Our supply bottlenecks indicator shows no sign of supply disruptions.

Key points

• Key points:
• US inflation climbed to 3.7%YoY in August, mainly underpinned by a jump in energy prices. Core inflation continued its downward trend, reaching 4.3%YoY.
• Euro Area headline inflation edged down to 5.2% YoY in August, with energy prices falling less than expected, while services inflation started to ease.
• Higher number of items show a more moderate rate of inflation. However, there are still a number of items with high weight in the CPI basket that have inflation rates above pre-pandemic levels.
• Consumer short-term inflation expectations moderated in the US. However, the decline halted in the Euro Area, where the recent rise in oil prices is boosting expectations.
• The shortage of materials and equipment moderated in the Euro Area.

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