Inflation's surge may have topped out

<p>Kia ora,</p><p>Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news there are growing suggestions that the inflation surge may be topping out</p><p>Remember, it is the July 4, Independence Day holiday in the US and financial markets are closed there.</p><p>Yesterday we noted than most of the top ten global commodities were falling in price now. Other key hard commodities like <a href="https://tradingeconomics.com/commodity/nickel" target="_blank"><strong>nickel</strong></a>, <a href="https://tradingeconomics.com/commodity/cobalt" target="_blank"><strong>cobalt</strong></a> and <a href="https://tradingeconomics.com/commodity/tin" target="_blank"><strong>tin</strong></a> are too, most essential for green energy projects. But not <a href="https://tradingeconomics.com/commodity/lithium" target="_blank"><strong>lithium</strong></a> yet even if its rise is now over. The overall slide in commodity prices are an indication that inflation's bite may be easing, and quite quickly.</p><p>Further, there are suggestions that the US may roll back some of its tariffs on Chinese imports, a Trump-era tax on Americans. (Only those drunk on MAGA propaganda thought they were a tax on the Chinese. US import volumes showed otherwise.) This could be significant too to arrest inflation.</p><p>China is feasting on cut-price Russian oil, gas and coal. It is helpful for China because their economy is struggling to regain momentum. Other suppliers like Iran are having to match the Russian discounts. That in turn is driving down West African oil prices. And Australian coal producers are having to make the same match. All these price declines in these key commodities are helping quell inflation globally.<br /><br />In China, property developer Shimao Group <a href="https://newslink.reuters.com/click/28263986.28417/aHR0cHM6Ly93d3cucmV1dGVycy5jb20vYnVzaW5lc3MvY2hpbmVzZS