Gavekal Capital: World Inflation Continues To Tumble

Friday, January 30, 2015

World Inflation Continues To Tumble

Our basic proxy for global inflation continues to fall further. The year-over-year change of the CPI of 33 countries (using a simple average) has fallen for eight straight months and now sits at just 1.42%. 11 of the 33 countries that we track now have a negative (or no change) year-over-year percentage rate in its CPI index. Also, another 11 countries have a CPI year-over-year change at or below 1%. Lastly, our world PPI proxy has just broken down below -2%. Other than in 2009, this is the lowest level going back to 2000.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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