Economics
China Factory Deflation Seen Turning on Commodities, Stimulus
- Recovering prices boost revenue, ease corporate debt burden
- Risk is China exports excess capacity to overseas markets
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China’s producer-price deflation, now in its fifth year, looks like it has turned a corner.
Prices for products leaving the factory will improve in each of the next four quarters and turn positive in 2018, according to economists surveyed by Bloomberg. Producer prices rose in March on a month-on-month basis for the first time since September 2013.