China’s deflationary tsunami builds

Thursday 4 August 2022

Pantheon with the note. This has only just begun.

Supply-Side Stresses are Fading, Bringing Hope of Disinflation

Regional PMIs for July were fairly downbeat, pointing to fading domestic and global demand. But a more positive aspect was the ongoing easing of supply chain issues, in contrast to past lockdownreopening cycles in China. Weaker demand undoubtedly helps on this front. But whatever the driver, a key source of global inflationary pressures is now receding.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.