Analytics

The True Cost of China’s Falling Prices

Bloomberg reports that deflation on the ground feels more pronounced than official data show, with prices of everyday goods plunging and the share of loss-making companies at a 25-year high.
The True Cost of China’s Falling Prices
Beijing officials call China’s current deflationary malaise “involution” — a destructive cycle of intense, self-destroying business competition sparked by excess capacity. Yang Zhifeng calls it something else: “twisted.” The 24-year-old, who has drifted from one low-paid job to another since graduating college two years ago, is living in the reality of a deflationary spiral that Bloomberg News analysis found looks... ...

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