1/3
June CPI prices were flat year on year, while PPI prices were down a whopping 5.4%. Month on month CPI prices were down 0.2%, the fifth month in a row of monthly deflation.
en.people.cn
June CPI prices were flat year on year, while PPI prices were down a whopping 5.4%. Month on month CPI prices were down 0.2%, the fifth month in a row of monthly deflation.
en.people.cn
2/3
In spite of higher food prices and the weak RMB (and reinforcing its real depreciation), China's inflation data continue to suggest just how weak domestic demand has been. I suppose we'll see this reflected in this week's trade data and next week's retail sales data.
In spite of higher food prices and the weak RMB (and reinforcing its real depreciation), China's inflation data continue to suggest just how weak domestic demand has been. I suppose we'll see this reflected in this week's trade data and next week's retail sales data.
3/3
I hope analysts don't argue, as they usually have, that low inflation increases the scope for PBoC monetary easing. It should be obvious by now that China's deflation is the consequence of monetary easing in a system in which easing affects supply more than demand.
I hope analysts don't argue, as they usually have, that low inflation increases the scope for PBoC monetary easing. It should be obvious by now that China's deflation is the consequence of monetary easing in a system in which easing affects supply more than demand.
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