China’s Deflationary Spiral Is Now Entering Dangerous New Stage
- Prices seen as falling through 2025 as wages, demand languish
- Long-term deflation could be major setback to China’s economy
“We are definitely in deflation and probably going through the second stage of deflation.”
Photographer: Qilai Shen/BloombergDeflation stalking China since last year is now showing signs of spiraling, threatening to worsen the outlook for the world’s second-largest economy and raising calls for immediate policy action.
Data released Monday confirmed that apart from food costs, consumer price growth barely registered in large swathes of the economy at a time when incomes are sagging.
