Chinese deflation fixed! Not

David Llewellyn-Smith

Monday 10 February 2025

China is out of deflation!

This is voucherflation as Beijing did giveaways in travel and white goods. Food helped.

The PPI is wall-to-wall weakness.

Inflation numbers were also boosted by the earlier LNY and will be given back in February.

Deflation in China is forever now.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.