Friday, September 3, 2010

Worldwide Inflation Outlook Numbers


The USDA reports do a good job of presenting the global macro economic picture and in the new agriculture exports report, I thought the section on inflation outlook numbers of various nations was worth noting:

As financial markets have been troubled, commodity prices have risen. Oil, selected industrial commodities, and real estate prices are expected to rise through 2011. The Brent crude oil price is expected to be up 25 percent in 2010, averaging $77 per barrel, rising to $79 in 2011.

Consumer price inflation in Canada, the United States, and the Eurozone is expected to be below 2 percent in 2010 and 2011. Asia has a mixed picture for inflation. Japan will see consumer prices dropping about 1 percent in 2010, with no change in 2011. India will likely see 10 percent inflation in both 2010 and 2011. China’s consumer prices are to rise 3-5 percent in 2010 and 2011.

Latin American inflation is mixed. Venezuelan consumer prices are slated to be up 30 percent this year and next. Argentina will see 9-10 percent inflation. Mexico is expected to see consumer prices up 4 percent in both years, and Brazil will see 4-5 percent inflation. World consumer prices are slated to rise 3.4 percent this year, but are expected to slow to 3 percent in 2011.

A nation's inflation rate is one of the factors involved in its food security or affordability.