Part 7/10:
While many expect inflation to continue rising, the current state of China's economy sheds light on other dynamics. Declining production aligns with consumer price adjustments, suggesting that inflation may not proceed as eagerly as some anticipate. With industrial output declining, it becomes clear that consumer prices may trend downward, as well, driven by the desperate need for manufacturers to stimulate demand amidst faltering sales.
Interestingly, this could mean a paradigm shift in inflationary expectations—not merely driven by consumers, but increasingly by unseen pressures emanating from industrial challenges in China and elsewhere.