Source: www.reuters.com
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NEW YORK (Reuters) - Deflationary pressures in China could spill over into global markets, near-term good news for Western central banks as they seek to curb inflation, U.S. asset manager PIMCO said.
China’s consumer sector fell into deflation and factory-gate prices extended declines in July, as the world’s second-largest economy struggled to revive demand.
“Given the usual lags, deflationary spillovers have likely only just begun to impact global consumer markets, with discounting likely to accelerate over the coming quarters,” Tiffany Wilding, PIMCO Economist and Managing Director said in a note on Wednesday.
Reporting by Davide Barbuscia
