Will US non-petroleum import price index exceed 112 by September 2026?
The Condition
PBOC + State Council announce consumer-facing stimulus exceeding 2% of GDP by end of Q3 2026
Our Ensemble Estimates
Given demand pivot: Will US non-petroleum import price index exceed 112 by September 2026?
Given no demand pivot: Will US non-petroleum import price index exceed 112 by September 2026?
Causal Effect
Demand-side pivot worth ~14pp to import prices exceeding 112, by weakening deflationary buffer that absorbs tariffs and dollar depreciation
Why This Matters
Tests whether a China demand-side pivot breaks the zero tariff pass-through equilibrium. Currently, non-petroleum import prices are flat (+0.9% YoY at ~108.41) despite 25-100% tariffs on Chinese goods and 7.6% dollar depreciation. The meta-synthesis identifies China's 40-month PPI contraction as the force absorbing both tariffs and dollar weakness. A demand-side pivot would moderate overcapacity, ease PPI deflation, and potentially unmask the inflationary effects of tariffs and dollar depreciation -- the core paradox of this theme.
Resolution Criteria
BLS Import Price Index for non-petroleum imports (Series ID: EIUIR) exceeds 112.0 for any monthly release through September 2026 data
Source Analysis
Non-petroleum import price index crossing above 110 indicates tariff pass-through overcoming deflationary offset