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China makes small dents in deflation battle as supply-demand imbalance persists
China's consumer inflation cooled in January while producer price deflation persisted, highlighting once again the underlying weakness in domestic demand and a key challenge for policymakers looking to shore up an uneven economic recovery. Beijing has repeatedly pledged to better align supply and demand and promised to raise people's incomes to spur goods and services consumption, but policy measures so far have delivered only modest results. "With the imbalances between supply and demand set to persist, we doubt China's deflationary pressures will fade any time soon," said Zichun Huang, China economist at Capital ... (full story)
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