Chinese deflation is forever now

Tuesday 10 September 2024

Why the mainstream needs to lie to itself about everything is some PhD investigation into the human condition that I do not have time for.

In the case of China, the perpetual delusion is that it is exiting deflation. It is not.

Yesterday’s CPI was weak despite a rebound to 0.6% year on year:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.