, Columnist
Don’t Underestimate China’s Low-Inflation Headache
Price gauges are retreating, as they are in many economies. It’s a challenge with global dimensions.
Low inflation is good for some people.
Photographer: NICOLAS ASFOURI/AFP/Getty Images
This article is for subscribers only.
China has an inflation problem. It's too low and likely to get lower still.
The slowing pace of consumer price increases isn't sexy like a bad purchasing managers’ number, a collapse in car sales or a stock-market swoon. Lowflation tends to happen slowly. That doesn't make it less of a concern. Once it gets hold of an economy, it can be devilishly tricky to shake. Witness how low interest rates are in major economies, given the length of the expansion and the rock-bottom levels of unemployment.