Weekly Economic Outlook: June 9-15, 2025
- Remin Francis I R
- Jun 16
- 2 min read
Updated: Jun 23
Last week’s economic data offered a mixed bag across the globe, highlighting some persistent challenges but also a few bright spots.
Starting with China, consumer prices fell again in May, marking the fourth straight month of deflation. CPI was down 0.1% year-on-year, which was a bit better than expected. Still, this points to weak domestic demand and continued concerns over trade tensions with the US. Transport costs dragged overall prices down the most, while food prices also dropped for the fourth month in a row. Core inflation, however, ticked up to 0.6%, its highest level since January.
In the UK, the unemployment rate inched up to 4.6% in the three months to April, the highest since late 2021. While employment did rise by 89,000, it was the smallest increase this year. Interestingly, more people are now holding second jobs, which make up 4% of the workforce. Wage growth seems to be softening too, likely impacted by recent tax and minimum wage hikes.
Over in the US, inflation edged up slightly to 2.4% in May, its first rise in four months, though still lower than expected. Energy prices continued to drop, especially for gasoline and fuel oil. On the other hand, used cars, new vehicles, and food prices saw modest increases. Interestingly, consumer sentiment bounced back strongly in June, jumping to 60.5 from 52.2. Lower inflation expectations likely helped, though sentiment is still well below where it stood late last year.
Back home in India, there’s some good news. Consumer inflation cooled to 2.82% in May, its lowest since early 2019 and comfortably within the RBI’s target range. Food inflation slowed sharply to below 1%, giving relief to household budgets. Meanwhile, India’s foreign exchange reserves continue to stay strong, climbing to $696.66 billion as of June 6, just a notch below last year’s record high.
That’s a wrap for the week. While inflation seems to be moving in the right direction in many parts of the world, global growth concerns and job market jitters remain key themes to watch.
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