Beijing’s economic woes worsened last week after it emerged China had fallen into deflation. The news highlights how the country is struggling to live up to expectations of a strong recovery after emerging from extended Covid lockdowns. But will falling prices have an impact beyond China’s borders, in places where the bigger risk is still that an extended period of high inflation will endure?
For now, economists say there is little reason for concern, as:
Chinese deflation is likely to prove temporary
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