Swiss inflation vs. German inflation.
The inflation rate in Switzerland is already well below the target of 2%. At 1.7%, it is a full 2ppts lower than the German rate. Source: Bloomberg, HolgerZ
Your grocery bill has increased more than 25% over the last 4 years!
Source: barchart
The Red Sea's inflation threat:
The disruptions in the Red Sea have roiled global supply chains and pushed up freight costs. The Houthis have pledged a “big” response to airstrikes. Iran wins either way w/US airstrikes on Houthis in Yemen. Source: HolgerZ, Bloomberg
Beware the second wave...inflation moves in mysterious ways and sometimes you get that "unplanned" second wave.
Source: TS Lombard, TME
Tokyo CPI down again supports BOJ dovish stance for now
Source: Bloomberg
You can measure the concrete effects of inflation on your purchasing power over time by using this CPI Inflation calculator
https://lnkd.in/eFFzyTpu (This applies to the US only)
While many economists and financial analysts look at the 1970s as a potential playbook for the current decade, the 1940s could be an interesting reference to consider as well
The 40s was a decade of war and high budget deficit and rising debt level in the US. Monetary policy was mainly about financial repression, i.e keeping rates low despite temporarily high inflation. Overall, it was positive for risk assets. Source: Win Smart, FRED
Ocean Freight
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