China’s latest inflation data reveals a clear shift beneath the surface, the AI-driven industrial cycle is now feeding into price pressures , even as consumer demand remains subdued. Key Takeaway China's producer prices rose at the fastest pace in nearly four years, driven by stronger demand for AI-related electronics, computing infrastructure and industrial metals. However, soft consumer inflation suggests domestic demand remains weak, highlighting a growing divergence between industrial activity and consumer spending. AI Demand Is Driving Factory Inflation Producer prices (PPI) rose 3.9% YoY Strong demand from: AI infrastructure buildout Electronics and semiconductors Industrial metals like copper and aluminium The global AI spending wave, especially data centre expansion is now directly influencing China’s upstream pricing power. Consumer Demand Still Lagging CPI grew only 1.2% YoY , below expectations Core inflation softened to 1.1% Weak consumption rem...
Germany’s federal and state tax revenues rose 6.9% in September compared to the same month last year, reaching €86.2 billion (US$93.54 billion), according to the finance ministry’s monthly report. This follows a 5.3% increase in August and a 7.9% decrease in July, highlighting the volatility caused by lacklustre economic growth.
For the period from January through September, tax revenue increased by 2.9%, totaling €626 billion. Analysts expect full-year 2024 tax revenue to rise to €863.68 billion, up 4.1% from 2023.
Germany’s economy, which contracted by 0.1% in the second quarter, faces a gloomy short-term outlook. The government forecasts a 0.2% contraction for 2024, making it the only member of the Group of Seven (G7) to post shrinking output for two consecutive years. Economic growth is projected to pick up in 2025 and 2026, driven by rising private consumption and disposable income.
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