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China: Deflationary risks have re-emerged - ANZ

According to analysts at ANZ, for the Chinese economy, deflationary risks have re-emerged, as seen in the plunge in June’s PPI and non-food CPI, to a new low not seen since Q3 2016.

Key Quotes

“The headline CPI figure stayed stable in June, as an uptick in food prices was largely offset by the decline in energy prices.”

“The slippage in inflation is likely to weigh on real activities, suggesting a rising need for more counter-cyclical measures.”

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