Prices of everything from shipping to computer chips have been falling recently as global supply chain problems begin to ease on falling demand.
In a boost to central banks that have been fighting 40-year inflation, core manufacturing costs have been declining due to fewer raw materials needed in factories amid easing consumer demand.
German bank Commerzbank insisted these price movements were a sign of improvement for stressed supply chains, which were overwhelmed post-pandemic as people started venturing out again.
These pressures are slowing as economies head into recession, leading to reduced demand.
Production in many sectors had previously been forced to pause but significantly lower demand now means manufacturers are experiencing an oversupply of some items, UBS noted.
Lockdowns and port shutdowns in China during the pandemic increased pressure on supply chains, which exacerbated the biggest price hikes seen this century.
UBS’ global measure of supply chain pressures has dropped for five consecutive months with all except delivery times into the UK having improved.