Posted 12/13/2023, 8:42:31 PM
China Faces Deflationary Pressures as Consumer Prices Dip, Weak Demand Threatens Economic Rebound
- China's consumer price index shows deflation at -0.5% growth rate, largest dip in 3 years
- Core inflation remains positive but food and energy prices dropping faster
- Consumer demand still weak despite lifted restrictions post-pandemic
- China's central bank faces dilemma, may not be able to afford stimulus to reinvigorate economy
- China's economic downturn and deflation could lead to further disinflationary pressure in the U.S.