So-called China deflation is good news for profits
==========

The article discusses the misconception that China's economy is collapsing and highlights the positive impact of falling producer prices and rising consumer prices on corporate profits. The 0.8% drop in China's consumer price index in January was largely due to a 17% drop in pork prices, while core consumer prices rose by 0.4%. Falling producer prices and rising consumer prices have historically boosted industrial profits in China. The article also mentions that falling auto prices and housing prices have their own implications, benefiting consumers and young families respectively. Overall, the article argues that the Western media's interpretation of China's economic reports is biased and fails to consider the nuances of price behavior.

#China #Deflation #Economy #Prices #ConsumerPriceIndex #ProducerPriceIndex #CoreCpi #Ppi #IndustrialProfits

https://asiatimes.com/2024/02/so-called-china-deflation-is-good-news-for-profits/