Play Videocolumn is now entirely blue. No country, not even anemic Japan, has deflation anymore. Consumer prices were up four per cent in Japan in December. Since the 1990s Japan has struggled to avoid deflation. Well, struggle no more.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
The average inflation rate for the Economist’s 43 entities is double-digit: 11.8 per cent, though the median is “only” 7.6. The average is so much bigger than the median because of outliers like Argentina and Turkey — poor Turkey! — at 57.7 per cent. But an unlucky 13 countries do have double-digit inflation. Yes, pandemics strike at different paces in different places but the variety in inflation rates across countries points to local influence, for good or ill.
On that point: the Economist’s column showing budget balances is almost completely monochromatic. It’s almost entirely red, for negative. Six countries have balanced budgets: Norway’s is a whopping 13.2 per cent of GDP. It’s amazing the fiscal success a country with oil and gas can have these days, isn’t it? Don’t you wish we had oil and gas?