China’s economy has fallen into deflation as consumer prices contracted for the first time in over two years, according to the National Bureau of Statistics on Wednesday. Consumer price index (CPI) fell 0.3 per cent year on year in July as opposed to zero change recorded in the previous month. Similarly, the producer price index (PPI) which measures prices of goods as they leave the factory premises fell sharply by as much as 4.4 per cent in July as policy makers struggle to revive consumption. Contraction of the PPI in July is the 10th consecutive decline the world’s second largest economy … Continue reading China Slips Into Economic Deflation, First Time In 2 Years