Made-in-China is staying in China… China’s global exports sank at their steepest pace since early 2020. That’s bad news for the world’s second-largest economy, which has been struggling to recover after unwinding its zero-Covid policy. Western consumers have been spending less on electronics and clothes (often made in China) and more on travel and restaurants (not in China). Last week, UPS said its revenue took a hit from weaker China demand. Meanwhile, China tipped into “deflation” (falling prices) — an ominous sign for the global economy.
Show receipts… Food prices have risen faster than other goods over the past year (#AisleAnxiety). Groceries were up 3.6% in July from a year ago, led by cereal and bakery staples, as the likes of General Mills, Kellogg, Hershey’s, and Kraft Heinz bumped prices (Kraft alone hiked prices 11% last quarter). While food companies point to higher commodity and labor costs, some consumers blame corporate “greedflation.” Now that shoppers are trimming back on pricier brand names, Coke, Pepsi, and others said they’ll ease off the hike pedal.