Economics
China's Rekindled Deflation Fears Add to Global Growth Concerns
- Nation’s factory prices rose at slowest pace since late 2016
- China economic woes add to the recession fears in Germany
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China is adding more challenges to the global economy this year, beyond the trade conflict that’s rattling financial markets.
Economists now see the threat of deflation in the manufacturing nation after producer price inflation slowed sharply in December, to the slowest pace since 2016. Nomura Holdings Inc. said "the nightmare of PPI deflation is imminent," China International Capital Corp. said "deflation pressures are on the rise," and Haitong Securities Co. projected the turning point could come as early as this month.