This is even more of a problem at a time when the US and other Western economies are moving in the opposite direction. It is difficult to understand the position here — is inflation a good or bad thing?
At times, it seems that every economic development in China is a precursor to fiscal doom. The latest round of economic figures have attracted the same assessment.
In an act of desperation, China is said to be engaging the monetary easing levers as inflation cools further. It is apparently a problem because as inflation continued to cool in China in January, it raised the prospect that the central bank may further reduce borrowing costs.
