The inflation drop is driven by a failing economy, not a softening of the cost of living. Watch for increasing council rates and insurance driven astronomically higher by climate change. Watch for the Chinese economy that came in well under expectations…China’s economy falters, raises pressure for more stimulusChina’s economy grew much slower than expected in the second quarter as a protracted property downturn and job insecurity knocked the wind out of a fragile recovery, keeping alive expectations Beijing will need to unleash even more stimulus. The world’s second-largest economy grew 4.7% in April-June, official data showed, its slowest since the first quarter of 2023 and missing a 5.1% forecast in a Reuters poll. Even if mortgage rates are cut, won’t they immediately jump again as geopolitical inflationary pressures kick off?

Source: New Zealand Herald July 19, 2024 00:05 UTC