The headwaters of global production are not only not inflationary, but they are rapidly turning deflationary. China’s PPI is now overshooting forecasters to the downside:
In January 2022 , the national ex-factory price for industrial producers increased by 9.1% year-on-year and decreased by 0.2% month-on-month ; the purchase price of industrial producers increased by 12.1% year -on-year and decreased by 0.4% month-on-month .
The price falls are broad: