Downward trends in global trade are hurting Asian exports while simultaneously bringing some inflation relief to the United States as well as other Western Countries according to The Wall Street Journal.

Major Asian exporters experienced a huge boom in overseas product sales during the COVID-19 Pandemic, with consumers purchasing new computers, workout gear, home improvement equipment, etc., The Wall Street Journal said. However, Asian export levels began to contract in late 2022 due to rising interest rates. As a result, Westerners began to limit their overseas spending in favor of other services and experiences that weren’t available during the pandemic, hurting Asian economies.

In May 2023, exports from South Korea were down 11% over the last 12 months when compared to levels recorded during September 2022. During that same period, exports were down over 14% from Taiwan, 6% from Singapore, 4% from Japan and 3% from China.

Global trade weakness has also been reflected in the prices that are charged for goods once they leave Asian factories with Chinese producer prices down 4.6% in May 2023 when compared to May 2022.

At the same time, the U.S. import prices for goods from South Korea, Singapore, Hong Kong and Taiwan were down 6.3% compared to May 2022. In China, import prices fell by 2% during May 2023.

“If surging prices for goods during the pandemic delivered the first burst of inflation, and rocketing energy prices after Russia invaded Ukraine propelled the second, then the current stickiness of inflation is being fueled by increases in wages and the price of services,” writes The Wall Street Journal’s Jason Douglas. “So, while easing goods-price inflation is welcome, it doesn’t mean central banks have won the battle, economists say.“

Douglas concluded by saying that Asia is unlikely to be “as potent a force in tempering price gains as it once was.”