Inflation Remains Low in Most Advanced Economies Euro Area Sees Near Historic Lows in Inflation Rate
NEW YORK, Dec. 5, 2013 /PRNewswire/ -- In October, inflation as measured by the Harmonized Index of Consumer Prices (HICP) was positive in all economies compared, except for Switzerland, where prices remained stable compared to a year ago.
In October, Norway experienced the highest inflation (2.3 percent), followed by the United Kingdom (2.2 percent), Japan (1.5 percent) and Austria (1.5 percent). Inflation in Switzerland was unchanged. In the Euro Area, inflation was 0.7 percent.
"For the Euro Area, other than the dip during the Great Recession, October inflation was the lowest since the beginning of the HICP series in 1996," said Elizabeth Crofoot, Senior Economist with the International Labor Comparisons program at The Conference Board. "The large slack in the European economies suggests that inflation will remain low in the foreseeable future."
Although inflation remained positive in most countries, the monthly change in annual inflation increased only in Denmark (0.2 percentage points) and Japan (0.1 percentage points). In contrast, annual inflation in the Netherlands fell by 1.1 percentage points, a substantial drop over a one-month period.
About HICP and International Labor Comparisons (ILC)
Harmonized Indexes of Consumer Prices are measures of consumer price inflation that have been standardized across multiple countries based on European Union definitions. A monthly report compiles HICP trends for 16 economies, alongside conventional Consumer Price Indexes (CPI) as measured by national governments. The Conference Board adjusts official HICP and CPI metrics to a common base year to facilitate comparison with the United States.
The data is published as part of The Conference Board International Labor Comparisons program. Formerly a division of the U.S. Bureau of Labor Statistics, ILC is dedicated to producing economic indicators that optimize research, comparison, and planning in a global context.
For more information about The Conference Board ILC program:
For the associated report, tables, and technical notes, see International Indexes of Consumer Prices
About The Conference Board
The Conference Board is an independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.
SOURCE The Conference Board