State Street, PriceStats to Provide Online Food Inflation Data to Policymakers, the Public and Extend Provision of Comprehensive Inflation Data to Central Banks
May 17 2022 - 8:30AM
Business Wire
Indicators Derived From Unstructured Data Will Help Policymakers
Better Track Retail Pricing, Consumer Demand Shifts Driven by
Central Bank Policy and the Ukraine War
State Street Corporation (NYSE:STT) today announced that it will
begin providing the PriceStats Global Food Inflation series to the
public, on a complimentary basis, to help policymakers grapple with
rapidly rising food prices and supply shortages driven by the war
in Ukraine. State Street also announced that it will continue to
offer the full suite of State Street PriceStats Series, a
comprehensive suite of indicators to monitor trends in retailer
pricing and consumer demand in 22 countries, to central banks
around the world on a complimentary basis. The data was initially
provided to central banks in early 2020 following an influx of
inquiries from central banks as they sought to mitigate the
negative economic effects of the pandemic. The indicators have been
made available to 16 central banks via State Street’s Insights
research platform over the past two years.
“Real-time inflation metrics have proved invaluable during what
has been the fastest economic cycle on record. They were quick to
capture the swoon in prices as demand collapsed, but also the
rapid, and more importantly persistent, recovery in elevated goods
prices that has characterized the surge in inflation since. These
trends have continued into 2022, but the added shock of the war in
Ukraine means monitoring the rate of pass through of higher
commodities prices, into consumer fuel and food prices is now a
priority,” said Michael Metcalfe, head of Macro Strategy, State
Street Global Markets.
The indicators, which are created by Price Stats, LLC through
its exclusive partnership with State Street, track daily price
fluctuations in millions of consumer products sold by hundreds of
online retailers around the world. This information is synthesized
using econometric algorithms to produce high-frequency consumer
price indices that help our clients monitor trends in inflation.
Because many retailers adjust prices in real-time based on consumer
purchasing patterns, the data can also offer insights into consumer
demand in the real economy.
“The acceleration in food inflation and renewed supply
disruptions continue to put upward pressure on prices. It is
unclear how long these pressures will last, making it all the more
important for policymakers to understand the current real-time
dynamics of price trends,” commented Alberto Cavallo, the Edgerley
Family Associate Professor of Business Administration at the
Harvard Business School and co-founder of PriceStats. “We are happy
to be able to provide these indices to help support decision making
and policy formation in these difficult times.”
Examining the drivers of this trend in the U.S. economy, State
Street observes that:
- Year-to-date food inflation is currently on pace for a 12%
annualized rate;
- The previous maximum 4-month annualized rate for food inflation
since PriceStats began collecting data until the start of the
pandemic was 7%;
- Every month in 2022 has seen food inflation surpass previous
historical highs seen for that particular month.
The State Street PriceStats indicators build on the capabilities
of State Street’s academic thinktank, State Street Associates.
State Street Associates bridges the worlds of financial theory and
practice, develops proprietary investment indicators,
differentiated analytics applications and tailored investment
strategies for institutional investors around the world. The series
can be accessed via State Street’s Insights research platform,
here.
About State Street
State Street Corporation (NYSE: STT) is one of the world’s
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $41.7 trillion in assets
under custody and/or administration and $4.0 trillion* in assets
under management as of March 31, 2022, State Street operates
globally in more than 100 geographic markets and employs
approximately 39,000 worldwide. For more information, visit State
Street’s website at www.statestreet.com.
*Assets under management as of March 31, 2022 includes
approximately $73 billion of assets with respect to SPDR® products
for which State Street Global Advisors Funds Distributors, LLC
(SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
© 2022 State Street Corporation - All Rights Reserved
State Street Corporation One Lincoln Street, Boston, MA
02111-2900.
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Media Contact: Brendan Paul Bpaul2@statestreet.com +1 401
644 9182
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