MNI BRIEF: No Deflationary Outlook In China - NDRC Official
China will not experience deflation in the future as the economy continues to recover, but prices are still low which requires attention, Cong Liang, deputy director at the National Development and Reform Commission, told reporters on Wednesday.
Cong said deflation would not occur given August’s data showed household consumption and supply, and demand dynamics were improving.
“As demand steadily recovers, market confidence gradually increases, China’s overall price level is expected to continue to rise and gradually return to near the annual average level,” Cong noted. In his response, Cong highlighted China showed economic resilience in its trade sector, with Guangdong’s yuan-denominated foreign trade up 10.2% y/y in August.