{"id":6675041,"date":"2021-08-13T22:59:33","date_gmt":"2021-08-13T22:59:33","guid":{"rendered":"https:\/\/krieger.jhu.edu\/financial-economics\/?p=6675041"},"modified":"2021-08-13T22:59:35","modified_gmt":"2021-08-13T22:59:35","slug":"has-the-us-started-to-import-inflation-from-asia-by-melih-firat","status":"publish","type":"post","link":"https:\/\/krieger.jhu.edu\/financial-economics\/2021\/08\/13\/has-the-us-started-to-import-inflation-from-asia-by-melih-firat\/","title":{"rendered":"Has the US started to import inflation from Asia? by Melih Firat"},"content":{"rendered":"\n
Over the last 12 months, inflation has increased 5.4 percent in the US. Stoked by a leap for energy prices and a hefty 4.3 percent rise for core inflation. Throughout most of U.S. post-war history core goods price increases, on average rose at a much slower pace than services prices. Not so over the past 12-months. \u00a0Strikingly, the July year-on-year gain for core goods prices, 8.5 percent, towers over the 2.9 percent increase in core services prices. Since the history of muted core goods price increases owe much to cheaper imported goods from Asian emerging economy nations, it is natural to wonder if Asia is now, in contrast, exporting big price increases to the U.S.<\/p>\n\n\n\n
As the chart below powerfully demonstrates, Asian nation exports to the U.S. have carried flat to falling price tags, compared to the modestly rising prices from the EU and more generally from all Industrialized Countries
(Import\/Export Price Indexes (MXP)<\/a>).<\/p>\n\n\n\n