China’s consumer deflation extends as tariffs take toll

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China’s consumer deflation extends as tariffs take toll - Economic Times

Quick Summary:

Policymakers are implementing measures to stimulate the economy, while trade talks with the US offer potential tariff relief.

Chinese policymakers announced a slew of measures earlier this week to prop up the sputtering economy, cutting the policy rate and lowering the amount of cash lenders must keep in reserve.

Losses in jobs and incomes due to US tariffs may also weaken the ability and willingness of Chinese consumers to spend, likely prompting manufacturers and service providers to cut prices.