Is China Knocking on Deflation's Door?

(Beijing) – China's last war against deflation was waged in 1998, the year the nation's consumer price index and producer price index suddenly plunged in tandem.

The central government responded by launching economic and administrative reforms, hastening steps for joining the World Trade Organization, and steering public funds into infrastructure projects. The efforts paid off quickly: in a couple of years, the war was over and the economy was growing again.