by Chris Williamson
S&P Global
Average prices charged for goods and services rose worldwide at a slightly increased rate in May, reflecting persistently elevated services price increases combined with accelerating price growth in manufacturing. However, there are signs of rates of inflation cooling in Europe. In the US, the PMI data are consistent with inflation falling closer to the Fed’s target in the coming months.
Persistent global price inflation
Worldwide PMI survey data compiled by S&P Global for J.P. Morgan showed average prices charged for goods and services having risen globally at a marginally increased rate in May. The composite PMI Prices Charged Index edged up from 53.2 in April to 53.3, a level only very marginally below the 53.4 average seen over the past year – a period which has seen the index stuck in a tight range and stubbornly elevated by historical standards. By comparison, this index averaged just 51.2 in the decade preceding the pandemic; a time when global consumer price inflation averaged 2.7%. The recent PMI readings are consistent with global inflation running at roughly 3.5%.