Last week, the biggest news was the continued lack of global inflationary pressures. The US’ core PPI was 1.4% Y/Y while the core CPI printed at 1.7% for the same period. Germany’s WPI was .4% M/M, Italy’s was .2% M/M and .7% Y/Y while Spain’s was .3% Y/Y. UK inflation dropped a bit, with core CPI coming in at 1.7% Y/Y and core PPI coming in at 1% Y/Y. The sum total of all this news is central banks in the US, EU and UK have nothing to worry about from inflationary pressures. Should each bank want to continue their policy of low interest rates, they certainly can.
More over at XE.com