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Inflation in China surged unexpectedly in February, with consumer prices rising by 0.7 percent compared to the previous year, contrary to economists' forecasts of a 0.3 percent increase. This acceleration marks a significant shift from January, where prices were 0.8 percent lower year-on-year. Meanwhile, on a monthly basis, prices climbed by 1.0 percent. However, producer prices saw a decrease of 0.2 percent month-on-month and 2.7 percent year-on-year.
Is it possible that a very strong crisis and subsequent stagnation awaits China as happened to Japan in the 80s? I think history is repeating itself a bit but in a different place.
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In view of China's demographic collapse, I believe that a long-lasting crisis with social upheaval is not unlikely. Of course, we will have to wait and see how far the adaptation of high technology will affect the productivity of this economy as a kind of counter-current. If China succeeds in generating stability from this economic foundation, it could outweigh the deflationary and demographic crisis.
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Lower than i would have guessed
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Wonder what would the real rate be....
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