Around the world, we continue to see a decline in the inflation rate this summer. This morning both Italy and the Euro-Area reported a lower rise in prices. In the past month, 15 of the top 20 economies have reported lower inflation on a month-over-month basis.
This morning Italy reported that inflation on an annual basis declined by -0.4% to 6.0%. You can find the Italian report here:
While the Euro-Area reported a 2.8% decline in inflation to 5.3% annualized. Their report is here:
We continue to see a close correlation between energy cost and inflation, as demonstrated in the following chart. It shows consumer inflation in the European Union and the price of Brent Sea Oil.
Photo: North Sea Oil Platform