China under mounting pressure to ease policy as economy stumbles | Reuters

China under mounting pressure to ease policy as economy stumbles | Reuters:



"The producer price index fell 5.4 percent from a year earlier, the National Statistics Bureau said on Sunday, compared with an expected 5.0 percent drop. It was the worst reading since October 2009 and the 40th straight month of price decline.

Falling producer prices are worrying because they eat into the profits of miners and manufacturers and raise the burden of their debts. China's corporate debt stands at 160 percent of gross domestic product, twice that of the United States, according to a Thomson Reuters study of over 1,400 firms."



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Keywords- Deflation, QE, Quantitative easing, inflation, China