October 15, 2014

...AND CHEAPER...:

China's Next Export: Deflation (William Pesek, 10/15/14, Bloomberg View)

Inflation hawks might want to take a closer look at China's latest data, which just go to show how warped their worldview is becoming.

Anyone bracing for Federal Reserve rate hikes or a Japanese bond-market crash clearly isn't considering the deflationary currents coursing through the world's second-biggest economy. I'm not referring only to today's news that producer prices in China fell for a record-tying 31st month in September. Evidence is mounting that consumer prices are on a similar trajectory as exports wane, the nation's property slump deepens and consumers and businesses grow cautious.

Posted by at October 15, 2014 4:03 PM
  

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