Featured Research
Macroeconomic Insights: 90 More Days of Letting the Data Speak
Within hours of the large-scale tariffs taking effect, the Trump administration announced a 90-day pause, replacing the full tariff package with a baseline 10% rate. China—among the first countries to respond with retaliatory tariffs—was excluded from this pause and...
Macroeconomic Insights: 90 More Days of Letting the Data Speak
Within hours of the large-scale tariffs taking effect, the Trump administration announced a 90-day pause, replacing the full tariff package with a baseline 10% rate. China—among the first countries to respond with retaliatory tariffs—was excluded from this pause and instead faced a significantly higher 125% tariff. The announcement triggered the largest rally in stock market since 2008, largely reversing the losses incurred following the initial tariff news earlier that week.
During this period, Turnleaf chose not to apply discretionary adjustments to any of its inflation models to account for tariffs. Our stance remains firmly anchored in a data-driven methodology. Given the inherently inflationary nature of economic uncertainty, our inflation curve has consistently run above consensus expectations. We continue to place greater confidence in our models than in speculative overrides. For us, the data leads.
For economies like China, Turnleaf projects continued price contraction as the U.S. trade war undermines consumer confidence and erodes external demand—particularly from the Eurozone. Disinflationary pressures are expected to persist as trade tensions escalate and global partners increasingly decouple from Chinese supply chains. Given China’s centrality to global value chains, the probability of a broader global slowdown remains non-zero. Close monitoring of forward-looking manufacturing indicators will be essential to assess the dynamics of this disinflationary impulse.
Looking ahead, we expect the recent disinflationary effect from Brent crude oil prices to fade as markets stabilize. However, until the U.S.–China trade dispute is resolved and countries subjected to the 10% baseline tariff conclude their renegotiations, the elevated uncertainty and erosion of trust among economic partners will likely sustain long-term inflationary pressures.
Research Archive
Macroeconomic Insights – Poland’s Fight with External and Domestic Demand
As Poland navigates a complex economic landscape, its rapid growth, fueled by competitive wages and strong manufacturing, faces challenges from both domestic and external pressures. The country’s success in attracting manufacturing investments has driven robust...
Takeaways from Web Summit 2024
Think of Lisbon and no doubt it’ll conjure images of explorers setting sail in centuries past across the ocean, the hills that climb across the city, pastel de nata and salted cod… Of course, there is much to Lisbon which cannot be summed in a sentence of...
Macroeconomic Insights: UK Autumn 2024 Budget and Global Trade Pressures Add to Inflation Challenges
The UK government's Autumn Budget for 2024, introduced on October 30, is designed to enhance public services through increased capital investments, funded by higher taxes along with adjustments in welfare and spending. The Office for Budget Responsibility (OBR)...
Macroeconomic Insights: U.S. Inflation Outlook Under Another Trump Presidency
As U.S. economic conditions continue to evolve, Turnleaf will actively monitor inflation trends and publish regular updates to keep you informed. Our focus remains on leading indicators that provide real-time insights into market sentiment on inflation, delivering...
Macroeconomic Insights: Turkey’s Two-Front Fight with Inflation and the Lira
Turkey’s central bank has adopted a stringent monetary policy to combat inflation, a stark departure from previous unorthodox strategies. With borrowing costs now at a benchmark high of 50% since March 2024—the highest since 2002—this hawkish approach is beginning to...
Inflation Outlook for Canada in October 2024- Producer Optimism, Consumer Pains
Canada’s inflation outlook is shaped by a complex mix of declining energy costs, rising food prices, and evolving trade dynamics. At Turnleaf Analytics, we’re closely tracking these factors to provide our clients with a clear view of CPI trends and their potential...