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China Deflation And Commodity Currency Outlook
For so many countries, getting inflation down has been a real challenge. So, a bit of deflation might be seen as a good thing. But the opposite of inflation is also a problem for an economy. And the existence of deflation in a period when the economy is supposed to be growing, can be a significant warning sign. Yesterday, China reported an annual CPI of -0.3%, which was actually higher than the -0.4% expected. An important portion of that could be down to base effects, because the monthly rate grew once again at 0.2%. But the fact that the world’s second largest economy is seeing deflation right after reporting a ... (full story)