Posted 12/11/2023, 1:00:11 PM
China Faces Deflation Risks; Economists Urge 4-6% Inflation Target to Spur Growth
- Economist Steven Ng-Sheong Cheung says China should target 4-6% inflation to boost economy and household wealth
- China recently reported 0.5% deflation, lowest CPI reading in 3 years, renewing concerns
- Falling household wealth from property uncertainties is damaging economy and consumption
- Low inflation far behind 3% target; Beijing avoiding stimulus policies that could cause overcapacity
- Analysts say deflation is a serious challenge; China needs reforms to boost private sector confidence and domestic demand