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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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 Content
- China’s Economy Weakened by Low House Prices and Falling Exports: Kiplinger Economic Forecasts
- Key U.S. Foreign Policy Challenges in Power Struggle with China and Russia: Kiplinger Forecasts
- China’s Economy Slows, Shows No Clear Signs of Improvement: Kiplinger Economic Forecasts
- Global Factory Production Dips, but Supply Chains Improve: Kiplinger Economic Forecasts
- Rising Prices: Which Goods and Services Are Driving Inflation?
-
The 'Vinyl Rule' of Retirement: Plan for Two Sides in Your Next ActBecause “Life is what happens when you’re busy making other plans.”
-
Five Destinations for Active and Chill Travelers AlikeWhether you reach for a paddleboard or a lounge chair, find your groove in a location that offers something for both kinds of travelers.
-
AI Start-ups Are Rolling in CashThe Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.
-
What is AI Worth to the Economy?The Letter Spending on AI is already boosting GDP, but will the massive outlays being poured into the technology deliver faster economic growth in the long run?
-
More Shutdown Struggles Ahead for Divided CongressThe Kiplinger Letter Failure to pass a government funding bill by September 30 would trigger a shutdown of many federal services.
-
Kiplinger Special Report: Business Costs for 2026Economic Forecasts Fresh forecasts for 2026, to help you plan ahead and prepare a budget on a range of business costs, from Kiplinger's Letters team.
-
Trump-Era Regulations Will Broaden Access to CryptoThe Kiplinger Letter The president wants to make the U.S. the leader in digital assets.
-
Big Changes Are Ahead for Higher EdThe Kiplinger Letter A major reform of higher ed is underway. Colleges are bracing for abrupt change, financial headwinds and uncertainty.
-
Breaking China's Stranglehold on Rare Earth ElementsThe Letter China is using its near-monopoly on critical minerals to win trade concessions. Can the U.S. find alternate supplies?
-
America's Surprising Strengths in Manufacturing and ExportsThe Kiplinger Letter Despite common perceptions that the U.S. doesn't build things anymore, American factories are still hard at work. A special report from The Kiplinger Letter.
