‘Bout of deflation largely transitory’: 4 takeaways from China’s inflation data(www.scmp.com)

posted 1 year ago

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4 points

1 year ago

If wages stay stagnant, then yes.

If the average pay would rise faster than inflation it does not seem too bad. If the pay shrinks faster than deflation however it would be bad.

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2 points

1 year ago

Well yes, deflation of prices relative to wages, of course. That was implied.

Inflation is different even when wages do keep up because it wipes out savings.

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