US core goods inflation lower than in other countries: White House

Core goods inflation (excluding food and energy) has risen modestly, which has been more than offset by a decline in services inflation.

Though some commentators have attributed the increase in goods inflation to trade policy, placing the increase in an international context shows that core goods inflation has increased globally over the past 12 months and such inflation in the United States remains at a low level—1.2 per cent over the 12 months to July and 1.1 per cent annualised since January. It is also lower than in other countries, the article noted.

“Despite the recent uptick, core goods inflation is lower in the United States than in Canada, Mexico, and close to the UK and EU. Over the past year, an increase in core goods inflation is common across all of these countries except for the EU, which has had stable core goods inflation,” the White House article added.

ALCHEMPro News Desk (DS)