13 Jul Why China is flirting with deflation as the west battles rising prices
Posted at 07:36h
in Insights
Beijing’s policymakers fear low investment and consumer spending will hamper the economy’s post-COVID recovery
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Jul 13, 2023 / 01:06 PM IST
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Jul 13, 2023 / 01:06 PM IST
All Rights Reserved. FT and Financial Times are trademarks of the Financial Times Limited Not to be redistributed, copied or modified in any way.
With China poised to unveil its second-quarter gross domestic product figures on Monday, economists will be closely watching for clues about the underlying health of the economy.
Joe Leahy in Beijing and Andy Lin in Hong Kong
While central banks in developed countries wrestle with stubbornly high inflation, China has the opposite problem — the world’s second-largest economy is flirting with deflation.
Beijing revealed this week that consumer prices were flat in June compared with a year earlier while producer prices plunged at the fastest pace since 2016. That compares with a US inflation rate that hit 9.1 per cent in June last year and was at 3…