Time
China slid into deflation in July, adding pressure on policymakers to step up monetary and fiscal support even as signs that the decline in prices is temporary may limit any stimulus.
The consumer price index dropped 0.3% last month from a year earlier, the National Bureau of Statistics said Wednesday, marking its first decline since February 2021. Economists surveyed by Bloomberg had predicted a 0.4% decline in prices. More
Deflation is considered worse than inflation since the fall in prices lead consumers to wait on expenditures expecting prices to fall further in the future. It they do, it becomes a self-fulfilling spiral downwards in economic activity. -Dr. Tar
If we had a government that GAF about their own country, we could have Red China on life support.