There are many ways to measure inflation, and we have seen a notable uptick – especially in the US:
The US consumer price index grew 5.4% from June 2020 to June 2021. Also known as headline inflation, or headline CPI, it is one of the leading inflation indicators – albeit a volatile one.
“Core” inflation – which strips out volatile energy and food prices – was up by 4.5% over the same period.
The three-month annualised headline inflation rate was up 10.7% between March and June 2021 – one of the highest readings in the last 15 years.
Even more surprising, the three-month annualised core inflation rate was up 10.6% during the same period – the highest reading since 1981.
In many economies around the world, inflation has been low for some time. But we are seeing rising inflation trends in other advanced economies.