FACT BRIEF

Did the US have the lowest inflation in the world in the fourth quarter of 2023?

Tuesday, July 16, 2024

By Gabriel Vinocur

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The U.S. inflation rate, measured as the percentage change in the American Consumer Price Index over the previous year, was 3.24% in 2023.Q4. This was higher than in many other countries. The most relevant comparison countries are the G7, the world’s largest advanced economies. Three of these countries had lower inflation in 2023.Q4 (Italy (0.98%), Japan (2.92%), and Canada (3.21%)) while the other three had higher inflation rates (Germany (3.55%), France (3.72%), and the United Kingdom (4.40%)). The United States had the second largest decrease in inflation from its post-COVID peak among the G7: 5.40 percentage points. The percentage point (p.p.) decreases for the other countries were: Italy 10.77 p.p.; Germany 5.03 p.p.; United Kingdom 5.00 p.p.; Canada 4.34 p.p.; France 2.35 p.p.; Japan 0.95 p.p.

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Sources

Council on Foreign Relations Global Inflation Tracker

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