China’s deflation dilemma
Five charts to start your day
China is stuck in deflation and may soon beat its own 1960s record for falling prices. Economists say it needs stronger government action, or big trouble could lie ahead. Households have lost trillions in the property crisis, so many people are saving instead of spending, which pulls prices down even further. Some small export success and modest sales boosts were enough to hit Beijing’s official growth targets, but they’re not enough to tackle falling prices.
