To help you understand what is going on in the world economy and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You’ll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
Consumer prices in China are declining as economic growth falters. Consumer price inflation finally slipped into negative territory in July, following 10 consecutive months of decline for producer prices. A prolonged slump in the country’s property market, plunging export demand, and subdued spending by consumers have weighed on the economy following an initial burst of activity in the first quarter, after Beijing scrapped its strict pandemic restrictions.
Beijing is now under more pressure to step up monetary and fiscal support. But the government won’t rush into a decision. Instead, expect officials to determine how much of the current slowdown is attributable to structural factors, such as an aging population, and thus not easily addressed by stimulus measures. China’s central bank will also act cautiously amid a weaker yuan and elevated debt.
Subscribe to Kiplinger’s Personal Finance Be a smarter, better informed investor.
Save up to 74%
Sign up for Kiplinger’s Free E-Newsletters Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
Falling prices in China are good for countries dealing with elevated inflation, most notably the U.S., India, Germany and the Netherlands. In places where inflation is already low — Hong Kong, Japan, and South Korea — import prices could fall, on average.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related ContentChina’s Economy Weakened by Low House Prices and Falling Exports: Kiplinger Economic ForecastsKey U.S. Foreign Policy Challenges in Power Struggle with China and Russia: Kiplinger ForecastsChina’s Economy Slows, Shows No Clear Signs of Improvement: Kiplinger Economic ForecastsGlobal Factory Production Dips, but Supply Chains Improve: Kiplinger Economic ForecastsRising Prices: Which Goods and Services Are Driving Inflation?