China’s great deflation begins

Chinese producer inflation was zero in November and fell to 12.9% over the year:

The components are beginning to reverse with a little recent inflation in value-added segments as basic material inputs begin to deflate:

There’s not too much to worry about there so long as China keeps the heat on coal and iron ore over time.

The CPI popped a little:

But the segments look fine:

China is about to develop into a global deflationary sinkhole.

Houses and Holes
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