Fears about deflation have been growing for some time now, and the euro area is already seeing falling prices year on year on its headline measure. However, much of the downward pressure on inflation around the world to date has been due to falling commodity prices.
Read about it on Reuters’ Alpha Now
- According to the official data released last week, Chinese growth hit a 24-year low of 7.4% in 2014.
- Our own China Momentum Indicator (CMI) stood at just 3.9% in December. It points to much weaker growth, and a more dramatic slowdown, than the official data.
- The CMI supports signals coming from commodities markets that China is slowing rapidly. In our view China is now in a hard landing.