China’s Deflationary Spiral Intensifies

China saw significant deflation in January 2023 as consumer prices dropped by 0.8% YoY, the largest in over a decade. This decline outpaced economists’ predictions, suggesting a worsening economic forecast. Producer prices dropped by 2.5%, indicating ongoing factory-level deflation and challenging manufacturing recovery. Policymakers and analysts are now urging for aggressive policies to stimulate demand […]

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