ISMS 12: CPI Racing Across the Globe

<h2><strong>Is global CPI going to follow the US CPI slowdown?</strong></h2><h2><strong>Global Markets</strong></h2><h3><strong>Global CPI has leveled off and is slowing in DMs, but still rising in EMs</strong></h3><ul><li>Economies across the world have GDP of about US$90trn and an average CPI rate of 7.4%</li><li>The developed world has GDP of US$52trn and CPI of 6.9%</li><li>And the emerging world has GDP of US$38trn and a higher 8.2% CPI rate</li></ul><br/><h3><strong>World Jan. 2023 CPI was 7.4%, up 2.1ppts YoY; MoM DM continues to fall, while EM is rising</strong></h3><ul><li>DM Jan. 2023 CPI was 6.9%, up 1.5ppts YoY, but falling slightly MoM</li><li>EM Jan. 2023 CPI was 8.2%, up 2.9ppts YoY, and is rising MoM</li></ul><br/><h3>Key points</h3><ul><li>Global CPI was 7.4% in January, up 2.1ppts YoY, but it was flat MoM</li><li>Developed world CPI was 6.9%, up 1.5ppts YoY, but falling slightly MoM</li><li>Emerging world CPI in January at 8.2%, up 2.9ppts YoY, and it rose MoM</li></ul><br/><h2><strong>Developed Markets Regions</strong></h2><h3><strong>CPI is contained in DM Americas, peaking in DM Europe, and rising in DM Asia</strong></h3><ul><li>With in the Developed Markets, DM Americas is the largest with US$25trn of GDP and 6.3% CPI</li><li>Developed Europe has US$15trn of GDP and a higher 8.3% CPI</li><li>Developed Pacific is smaller at US$8trn and has the lowest CPI of the developed regions at 5.1%</li></ul><br/><h3><strong>DM Americas CPI falling, DM Europe peaking, DM Asia rising</strong></h3><ul><li>12 months ago, DM Americas had a 7.4% CPI which is now down to 6.3%, a 1.1ppts fall</li><li>This means that CPI went from 2.1ppts above the global average to 1.1ppts below</li><li>DM Europe rose from 4.4% 12 months ago to 8.3%, up 3.8ppts</li><li>This means it went from 0.9ppts below to 0.8ppts above the global average</li><li>CPI is racing up in DM Pacific from 1.5% 12 months ago to the current 5.1%, that’s a 3.6ppts increase</li><li>It has gone from 3.8ppts lower than World CPI to 2.4ppts lower</li></ul>