Charting the global economy: US stays on moderate-inflation path, deflation in China raises concerns

economictimes.indiatimes.com:

inflation continued along a path of moderation that is bolstering prospects for an economic soft landing, while across the globe in China, consumer and producer prices fell in tandem. The US core consumer price index, a closely watched measure of underlying inflation, posted the smallest back-to-back advances since early 2021 and suggested central bankers will hold off raising interest rates next month. Meantime, deflation in China is a worrisome sign for global economic growth. Lending by Chinese banks last month was the weakest in more than a decade, further evidence of weak demand. Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:

A key measure of consumer prices rose only modestly for a second month, bolstering hopes that the Federal Reserve can tame inflation without sparking a recession. The back-to-back 0.2% monthly gains were the smallest in more than two years. Credit-card balances surpassed $1 trillion for the first time last quarter, showing how even more widespread credit has become among American consumers as the US economy recovered from the pandemic. US chipmakers are struggling to fill key positions, a new study shows, as a shortage of skilled labor threatens to hobble efforts to revive the domestic industry.

Chinese banks extended the smallest amount of monthly loans since 2009 in July, a further sign of weak demand in the world’s second-largest economy that raises the risk of prolonged deflation pressure. China’s consumer and producer prices fell together for the first time since 2020, a deflation cycle that could give global central banks some help in fighting inflation in their own countries but signals a worsening outlook in