Japan Leads Acceleration in Consumer Prices across Advanced Economies, But Deflationary Risks Remain for Much of Europe

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Jun 05, 2014, 10:00 ET

NEW YORK, June 5, 2014 /PRNewswire/ -- In April, annual inflation as measured by the Harmonized Index of Consumer Prices (HICP) increased in 13 of the 16 economies compared.

Inflation grew fastest in Japan (from 2.0 percent in March to 4.1 percent in April), followed by Sweden (from -0.4 to 0.3 percent) and the United States (from 1.2 to 1.8 percent). Alongside Sweden, Spain and Switzerland also emerged from deflationary territory in April. Inflation was unchanged in Belgium (0.9 percent) and the United Kingdom (1.7 percent), and fell slightly in Norway (from 1.8 to 1.5 percent).

"Although year-over-year inflation in the Euro Area ticked up in April, inflation in the region remains historically low and the risk of deflation in several European economies remains high," said Elizabeth Crofoot, Senior Economist with the International Labor Comparisons program at The Conference Board. "In Japan, an increase in the national sales tax from 5 to 8 percent at the beginning of April, coupled with the effects of recent expansionary monetary policy, resulted in the highest inflation rate since January 1991. At 4.1 percent, Japanese inflation is more than double that of any country compared."

Japan, the U.S., Sweden, and Switzerland are the only countries where inflation is higher than a year ago (April 2013). Annual HICP-based price increases now stand at 1.0 percent or lower in 10 of the 16 economies and below 2.0 percent in all except Japan.

About HICP and International Labor Comparisons (ILC)
Harmonized Indexes of Consumer Prices are measures of consumer price inflation that have been standardized across multiple countries based on European Union definitions. A monthly report compiles HICP trends for 16 economies, alongside conventional Consumer Price Indexes (CPI) as measured by national governments. The Conference Board adjusts official HICP and CPI metrics to a common base year to facilitate comparison with the United States.

The data is published as part of The Conference Board International Labor Comparisons program. Formerly a division of the U.S. Bureau of Labor Statistics, ILC is dedicated to producing economic indicators that optimize research, comparison, and planning in a global context.

For more information about The Conference Board ILC program:
www.conference-board.org/ilcprogram

For the associated report, tables, and technical notes, see
www.conference-board.org/ilcprogram/consumerpricesmonthly

About The Conference Board
The Conference Board is an independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.

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