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China’s Days of Exporting Deflation May Be Drawing to a Close

  • PPI turns positive in September first time since early 2012
  • Factory and export prices show strong historical correlation
Photographer: Tomohiro Ohsumi/Bloomberg

One of the disinflationary pressures that’s gripped the global economy for the past five years is abating.

China’s factory gate prices -- falling since the start of 2012 -- turned positive in September, squeaking out an increase of 0.1 percent from a year earlier. Given China’s status as factory to the world, that means prices of everything from T-shirts, televisions, tools and toys may follow -- or at least stop getting ever cheaper.