G10 Inflation Monitor: Firmer Goods, Softer Services

Goldman Sachs G10 Inflation Monitor. In the US, core PCE inflation was 3.0% in August and was revised down by 0.3pp in July to 3.0% after methodological changes to PCE measurement. Traditional exclusion-based core inflation edged down in the Euro area (2.4% vs. 2.5%), was unchanged in the UK (2.6%) and Japan (1.9%), and accelerated in Canada (2.1% vs. 1.9%). GS trimmed core inflation now stands below 2% in the US (PCE, 1.8%). On breadth, the share of the headline basket running above 4% increased in Japan, the US and the UK, and decreased in the Euro area and Canada. On a 3-month annualized basis, core goods inflation accelerated in the Euro area, US, Japan and UK but slowed in Canada, while core services inflation slowed in the US, Euro area, Canada and Japan and moved sideways in the UK;