Friday, November 18, 2011

PIGS Inflation Continues Strong

I am at an exec offsite for my employer yesterday and today and cannot blog properly.  However a quick note that October inflation figures are out for the Eurozone, and the mystery of moderately strong inflation in the PIGS countries continues.

Overall, the Eurozone had 3% inflation over October 2010, with all the PIGS countries coming in near or above the average: Greece 2.9%, Spain 3%, Italy 3.4%, and Portugal 4%.  Ireland continues to be the main exception at 1.5% - the only one of the troubled peripheral countries with lower inflation than Germany at 2.9%.  So the idea that these peripheral countries have deeply depressed economies and will slowly disinflate their way to competitiveness doesn't seem to be working out.  I continue to be mystified as to why sellers have enough leverage to increase prices here.

Across the Eurozone, transportation continues to be the strongest component at 5.8% with housing a close second at 5.1%.  Inflation without unprocessed food or energy was 2.0%


kjmclark said...

The new proposed CAFE standards for 2017-2025 are out. I liked this part:
"Targets beginning in 2017 would require a 5 percent annual efficiency gain for cars and 3.5 to 5 percent for light trucks, which include SUVs, pickups and vans."

I recall a post you did back at TOD pointing out we'd need a 4% per year improvement in fleet economy. They seem to at least be trying to head in the right direction.

Alexander Ac said...

Off-topic comment, but check these

Incredible time-lapse video of Earth from space

so we are all linked together, right?


Alexander Ac said...

In case, somebody missed it, oil exports from Syria ARE OFF