From the (via MNI):

  • Deflation, not inflation, is the biggest economic risk, analysts say in a China Securities Journal report

(referring to the PPI data over the weekend, fell to the lowest in more than five years at -5.4% y/y in July)

  • CPI rose 1.6% y/y to a nine-month high
  • CPI expected to fall short of a targeted 3% leaving room for monetary-policy easing, they say
  • Commodity-price declines added to imported deflationary pressure
  • Weak domestic economy and pressure to address overcapacity dragged down domestic demand, analysts say
  • They expected more fiscal policy efforts and no change to the easy monetary stance