All articles tagged with #deflation
The Euro zone is drifting towards deflation due to ongoing paralysis in fiscal policy, with Germany now experiencing significant economic slack—its GDP is 9% below pre-COVID trends—leading to deflationary pressures spreading across the region, similar to post-2008 global trends.
China's industrial profits have sharply declined due to weak demand and deflationary pressures, highlighting ongoing economic challenges in the country.
Elon Musk suggests that AI and robotics could be the key to solving the US's $38 trillion debt crisis by boosting productivity and economic growth, potentially leading to significant deflation, which could reduce the burden of debt payments. He warns that current interest payments on the debt are extremely high and that technological advancements might help offset inflation and interest costs within a few years.
China's consumer prices unexpectedly rose by 0.2% in October due to holiday-driven demand, but economists believe this increase is temporary amid ongoing deflationary pressures and weak economic growth, with broader price declines persisting for over two years.
In October 2025, China's consumer prices returned to positive growth at 0.2%, ending a period of deflation, aided by holiday demand, while producer prices continued to decline but at a slower rate, reflecting ongoing economic challenges amid trade tensions and a housing downturn. The government aims to boost domestic consumption to support economic growth.
China's consumer prices declined more than expected in September, remaining in deflationary territory, with persistent producer price deflation highlighting ongoing sluggish domestic demand and trade tensions, despite some signs of policy impact and industrial profit recovery.
China has experienced a return to deflation, indicating a slowdown in economic activity and signs of cooling in the economy.
China's consumer prices fell more than expected in August, with ongoing deflation in wholesale prices, prompting calls for increased fiscal measures to boost demand and counteract weakening exports, amid signs of a sluggish economic recovery.
China's stock market is experiencing a strong rally despite economic challenges like deflation, a property crisis, and slowing growth, raising concerns about a potential bubble amid signs of irrational exuberance and parallels to the 2015 crash, though some believe the rally could be sustained due to broader market support.
China's July factory-gate prices fell more than expected, with PPI down 3.6% year-on-year and CPI unchanged, highlighting ongoing deflation concerns due to sluggish domestic demand, trade uncertainties, and structural economic challenges. Despite some signs of easing deflationary pressures, analysts remain cautious about the sustainability of recovery without demand-side stimulus and reforms.
China's top leaders have committed to supporting the economy by managing disorderly competition, maintaining steady policies with flexibility, and focusing on supply-side measures to combat deflation and overcapacity, while avoiding immediate stimulus measures. They emphasized boosting consumption, technological innovation, and structural reforms, with key meetings scheduled for October to discuss the next five-year plan amid ongoing economic challenges.
China's top leaders have committed to supporting the economy by managing disorderly competition, maintaining stable yet flexible policies, and boosting demand through structural monetary tools, amid ongoing risks like deflation and overcapacity, with a focus on technological innovation and stabilizing growth around 5% in 2025.
China's producer price index (PPI) fell by 3.6% in June, marking the worst deflation in nearly two years due to weak domestic demand and ongoing trade tensions, especially with the US. Consumer prices saw a slight increase, but overall economic activity remains subdued, prompting calls for further stimulus measures.
China's producer prices fell by 3.6% in June, the largest decline in nearly two years, deepening deflation amid ongoing price wars and overcapacity issues, while consumer prices showed slight growth, prompting concerns over sustained economic slowdown and the need for policy stimulus.
China has criticized manufacturers over a price war amid growing fears of deflation, highlighting concerns about the impact on the economy and the need for regulatory oversight.