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Exact(10)
We find persistence in the series, that is, core goods inflation depends on its own past value.
Another is how very low goods inflation has been for more than a decade, only rarely straying anywhere close to 2%.
You can see the divergence in core goods inflation and core services inflation in the chart below A few things stand out.
For the core goods inflation model, the results suggest a very different set of factors influencing the behavior of the series.
Core inflation in the euro zone dropped from 1.2% to 1.1% and Jonathan Loynes of Capital Economics points out that core goods inflation is 0.4%.
Last, we find no meaningful effect of the unemployment gap on core goods inflation, consistent with commentators who contend that it is global (and not domestic) economic slack that impacts core goods inflation.More simply, services inflation is about expectations and unemployment, while goods inflation is about global capacity utilisation.
Similar(50)
And even in manufacturing, Hong Kong's remaining exports are competitive because gains in productivity have kept traded-goods inflation low.Inflation in services, by contrast, has risen steeply.
Quite the contrary, with skyrocketing international oil prices and consumer-goods inflation at home, India's unemployed and landless as well as its large fixed-income labouring population found themselves sinking deeper into starvation's grip and impossible debt.
Good inflation?
He believes the economies have "good inflation protections and a history of being willing to repay their debt".
Economists said that the good inflation outlook will likely encourage the central bank to administer a few further rate cuts.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com