Stock Take

Lorcan Allen: Reversal in prices may be on horizon due to Chinese woes

Inflation may be stabilising due to a contraction in Chinese manufacturing output – but when will lower food, energy and construction costs reach consumers?

Workers checking rolls of sheet aluminium at a factory in Huaibei in China's eastern Anhui province. Picture: Getty

The last 18 months have been defined by soaring inflation levels and the efforts of central banks all over the world to rein in rising prices. What has become very clear very quickly is that inflation has proved far stickier and harder to tame than monetary policymakers first anticipated.

In Europe and the US, there are increasing signs that the rate of inflation is beginning to stabilise. Last week, new figures from Eurostat showed that ...