China’s Record Deflation Finds Dangerous Cure in Oil Shock

China’s Record Deflation Finds Dangerous Cure in Oil Shock

Surging global oil prices stemming from the war with Iran have put China on the cusp of exiting a record streak of deflation well ahead of schedule. But it’s not clear if the economy is better off.

Cost-Push Inflation  A more immediate risk for China is what economists call cost-push inflation that further hurts factories. In the absence of stronger demand, manufacturers may find it difficult … [+3192 chars]
China’s Record Deflation Finds Dangerous Cure in Oil Shock - FHMnews