Chart: China’s deflationary pressure16 July, 2012, 15:31. Posted by Zarathustra
The chart below shows the input price component and official PMI along with CPI inflation (year-on-year). The price component of PMI is obviously pointing to deflation, just like the recent PPI figures have been suggesting, while CPI inflation has already slowed significantly. With month-on-month change of the CPI in negative territory for three consecutive months, we see deflationary pressure in the economy.
Source: National Bureau of Statistics