China Deflation Surprise! The world is full of greatness and China is eating Swastaichi; ‘Dragon’ economy in trouble due to rate hike
[ad_1]
Pudhari Online Desk : The problem of inflation continues to plague the world, so central banks in various countries are struggling to keep inflation under control by increasing interest rates. But the opposite situation has developed in China. The prices of goods in China are falling, which is called Deflation in economics. The situation is exactly the opposite in Mahagai.
China’s Consumer Price Index (CPI) was recorded at 0.5 percent in November. This is the low point after November 2020. CPI in November would have remained at 0.1 percent. But in reality CPI has been recorded by only 0.5 percent. CNN has given the same news.
Due to lack of demand for goods and services, a situation of deflation is created. Therefore, as the demand increases, there is pressure on the government to prevent the goods from going vacant.
China is the second largest economy in the world. The real estate industry in China is in complete crisis. Or indeed, youth unemployment has become a major economic problem in China. Due to this the demand in the economy has decreased.
In China, CPI started decreasing in February and CPI started turning negative from July. There was a slight improvement in August, but the CPI started declining again in October. Initially the decline in CPI was limited only to the supply of goods, now it has reached the services sector only. Pan Gangsheng, Governor of the People’s Bank of China, China’s central bank, has expressed optimism that prices will improve in the coming months.
Hehi Covenant
[ad_2]
Source link
