China’s producer price index (PPI) has continued to fall for 21 months, according to the latest data released by the Chinese communist regime’s National Bureau of Statistics (NBS) in June, while the consumer price index (CPI) was at a 3-month low.
Economist Davy J. Wong and China observer Wang He say the data show that the risk of deflation in China has continued. Deflation signals economic contraction and recession as lower prices and weak consumer demand lead to less revenue for producers, production overcapacity, and higher unemployment.
