China's inflation rate lowest in many years

We usually write about inflation in Poland. However, it is worth taking a look at what is happening in this field in China. W [...] https://www.pinterest.com/pin/1085437947660215829/

We usually write about inflation in Poland. However, it is worth taking a look at what is happening in this field in China. In the Middle Kingdom a clear fall in prices can be seen. What's more, this phenomenon worries economists. Inflation in China is falling Why is inflation falling in China? One of the reasons is the falling price of pork. The result is the lowest inflation in 11 years, according to data from China's statistics bureau. Experts suggest that in a month's time behind the Great Wall deflation may even be registered. "It will be a nice change after the prices grew by more than 5 percent at the beginning of the year, and the Chinese people's favorite meat cost twice as much," - comments the bankier.pl portal. "The CPI inflation rate has been moving in a rhythm determined by pork prices for nearly 2 years. Soaring meat prices have pushed inflation above 5 percent in early 2020. For several months now, pork has been growing much more slowly - due to a higher base, but also to an improvement in the situation on the African swine fever front," - adds bankier.pl. For example, at the end of October the price of pork was already 2.8% lower than a year earlier. As a result, at that time consumer inflation was only 0.5 per cent and was the lowest in over a decade. It can be concluded that in November we will even be discussing deflation in China. Economists are worried about low inflation While in Poland economists and consumers may be saddened by rising prices of products and services (and not only of meat), experts note that low inflation in China may be a sign of crisis. "Some economists are worried about low core inflation (which does not take into account changes in food and energy prices). It has been hovering around 0.5 percent for the past four months, arguably a sign of some weakness in demand in the face of financial difficulties and future concerns over the coronavirus pandemic. On the other hand, Chinese factories are working hard, and competition on the market beyond the Wall is enormous, hence the pressure for low prices, beneficial for consumers," banker.pl notes. - notes bankier.pl. Tags China inflation inflation in china