Here comes China’s next deflation tsunami

Chinese inflation is out and it’s firm for consumers at 2.8%:

But it’s all about pork as the epidemic of African swine fever slaughters supply and will thus pass:

Meanwhile, and more importantly for Australia and the world, producer inflation is cooked and is about to plunge as the trade war hammers industry:

Just wait for the ferrous sector join the deflation:

China’s next deflation tsunami is on its way even before the yuan falls.

David Llewellyn-Smith

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