Our inflation GPS (the green line in the charts below) shows where core consumer price inflation may stand in six months’ time for each economy. The blue line shows the actual reported core consumer price inflation for each economy. Click the country flags to toggle between the nine countries we track. Click inside the charts to zero in on any time period.
The GPS models the relationship between rates of core inflation and a broad set of economic indicators including measures of slack, inflation expectations, and other inflation-related data such as business surveys and wages. It also incorporates a proprietary big data signal from BlackRock’s Scientific Active Equity team measured through text-mining of commentary on inflation.
The BlackRock GPS was developed by BlackRock Investment Institute and Scientific Active Equity. For full details, see Introducing the BlackRock GPS.