Blog: Forget B.R.I.Cs, C.I.V.E.TS and M.I.N.T.

There’s an interesting piece of research, courtesy of the bods at Société Générale, that highlights why we should be maintain a keen eye on inflation in the developing world. Nothing new in that, but the paper reveals a telling correlation between China CPI and US core goods inflation, that essentially points to the degree by which US quantitative easing is driving China’s CPI higher, and (paradoxically) pulling up the cost of US imports and US core goods inflation – it is a reinforcing loop. A similar chart, produced in-house, suggests a correlation can be drawn between UK RPI and Ch...