Chart: China’s deflationary pressure
16 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
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About Zarathustra
Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.