World economy slows

The world economy slows

The rate of global inflation reduced the second consecutive month in August has reached its minimum level in seven years. Consumer price growth does not exceed 1% in Europe, and in some countries of the world and does deflation. This will entail a reduction in the volume of world trade and the emergence of migration barriers.

Annual inflation among the countries of the "Big Twenty", which account for 85% of global production, slowed to 2.1% from 2.2% in July, according to WSJ, citing data from the Organization for Economic Cooperation and Development (OECD).

This is the slowest growth in consumer prices in October 2009: while they increased by 1.7%.

Annual inflation in "big seven» (G7) in August, the OECD estimated accelerated to 0.7% compared with 0.5% in July. The greatest increase in consumer prices was registered in the US and Canada - by 1.1%. But if inflation is gaining momentum, increasing from 0.8% in July, then in Canada potrebtsen growth is slowing in the US in July, inflation there was fixed at 1.3%.

The EU's major economies can not achieve 1% inflation in Great Britain potrebtseny rose to 0.6% in August, Germany - 0.4%, France - 0.2%.

Deflation was registered in Japan and Italy - 0.5% and 0.1% respectively. It is worth noting that the last time such a level of deflation was recorded in Japan in March 2011.

In Russia, inflation in August was 6.9% on an annualized basis, the OECD says. This is 0.31% less than it was in July, while inflation in the country amounted to 7.21%. Approximately the same rate of inflation (6.78%) was recorded in Russia five years ago - in November of 2011.

The annual rate of inflation among the 35 OECD countries, most of which are developed countries, in August rose to 0.9% from 0.8% in July. But it still falls short of the target of 2% sought by central banks in developed countries.

Slowing the rate of inflation in the largest and most populated developing countries: in China and India potrebtsen growth fell to 1.3% and 5.3%, respectively.

India's economy is the third largest in Asia and one of the fastest growing in the world. On Tuesday, the Reserve Bank of India cut its key interest rate to 6.25% from 6.5%, reaching the lowest value in the last five years. The central bank explained his decision to a significant slowdown in global growth and favorable forecasts concerning inflation, adding that the decline in inflation "has opened the space for political action," according to The Financial Times.

Chief Economist of Yes Bank Shubhada Pao said that the Reserve Bank of India has used the situation to reduce the interest rate, the WSJ concludes.

Related posts

• 
  

  ECB is considering to raise inflation

  
  

  The ECB is considering to raise inflation by a ransom of new assets Probably, Mario Draghi is now very easy: ECB I was able to knock down a recession in...

  
  


• 
  

  Europe and world need Russia as

  
  

  Europe and the world need Russia as a partner for resolving global conflicts Vice Chancellor of Germany Sigmar Gabriel said today that Europe is not...

  
  


• 
  

  It predicted emergence of world's

  
  

  It predicted the emergence of the world's first trillionera The world's first trillioner appear in the world in the next 25 years, against a background...

  
  

Next posts

• About my adviser Greed Master


• Focus Italy plans to rescue banks


• Nabiullina key risks for Russian