China’s deflation could spill over into a global concern, economists say

• Beijing’s deteriorating economic fundamentals have become starkly apparent in recent months, with July’s data broadly missing expectations.
• China’s headline consumer price index fell 0.3% year-on-year in July to register deflation for the first time in two years, presenting an opposing problem to that faced by major central banks in the West.
• “Persistent deflation in China would likely spill over to developed markets, as a weaker yuan and an elevated inventory-to-sales ratios lower the cost of Chinese goods abroad,” said Pimco economists.

China’s deflation could spill over into a global concern, economists say (cnbc.com)