What do collapsing shipping costs mean for inflation?

Global shipping costs are falling as quickly as they rose. What’s behind this unwinding of the pandemic-era price surge, and what will it mean for global inflation rates? Plus, does Beijing’s response to public anger over zero-COVID do anything to change China’s economic outlook?

Show Notes

The Ever Given made worldwide headlines when it became stuck in the Suez Canal in March 2021. The cargo ship's dilemma symbolised global supply chain disruptions that were reflected in a record surge in shipping costs. But those costs are now falling as quickly as they rose in 2020-21. What’s behind the plunge, and can this help win the battle against inflation? In this episode of The Weekly Briefing, Simon MacAdam and Leah Fahy from our Global Economics team get to grips with the rise and fall – and potential disinflationary impact – of shipping costs. Plus, Group Chief Economist Neil Shearing talks about what zero-COVID means from a global macro perspective and explains why the latest UK house price was so shocking. 

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Capital Economics, a world leading provider of macroeconomic insight, presents The Weekly Briefing – the show with all you need to know about what's happening in the global economy and markets. From the Fed's next move to China's slowdown to the global housing bust, each week, our team of economists take apart the big economic and market stories and highlight the issues that investors should be paying more attention to.