China is an economic juggernaut so when it falls into deflation the rest of the world pays attention
China’s consumer sector has fallen into deflation in July despite extensive efforts to revive the country’s economy.
Before Covid the country’s economy was the envy of the world, but in the years since it has failed to gain traction as it emerged from arguably the most strict lockdowns in the world.
We can see the level of the decline of consumer prices compared to the prices of goods coming out of the factory gate.
With an economy of China’s size, this surely will have knock on impacts to the rest of the world.
