Sometimes it’s worth posting the same chart over and over in order to elbow it firmly into the public consciousness. So here’s the inflation chart again. This version comes via Matt O’Brien, and it covers four of the biggest economies in the world. The message is simple: inflation is down everywhere. There are blips from month to month, but ignore them. The big picture couldn’t be clearer.
Bottom line: Nobody knows what will happen in the long term, but for now we simply shouldn’t be worrying about inflation. We should be worrying about growth and unemployment. Inflation just isn’t a problem.