U.S. Core Inflation Expected Over the Next 21 Months This chart shows the U.S. core inflation expected over the next 21 months. It has been quite accurate for more than 20 years. M2 velocity year-over-year leads U.S. core inflation by 21 months (R² = 0.61 since 1996). See also “Where Does Inflation Come From?” and “How to…
Global Inflation Interesting chart showing that inflation is largely a global phenomenon. Picture Source: J.P. Morgan Asset Management
Civilian Labor Force Growth vs. Inflation since 1962 This chart shows that civilian labor force growth leads CPI by four years. Picture source: Bank of America Merrill Lynch
Labor Costs Lead Core Inflation by 6 Months Historically, U.S. labor costs have been a good leading indicator of core inflation, because when labor costs rise, companies tend to increase their prices. Picture source: Legg Mason
Eurozone Inflation and Brent Oil Prices This interesting chart shows the direct effect of brent oil prices (YoY % change) on euro area inflation. Picture source: Jeroen Blokland
