Deflationary pressures in China are likely to continue for at least another six months due to weak demand and as the real estate crisis continues to undermine confidence within the economy.
The economy-wide measure of prices, called the GDP deflator, is expected to decline for at least two more quarters, according to 12 of 19 economists in a new Bloomberg survey. This measure – which measures the difference between nominal and real GDP growth – has already fallen over the last three quarters, and a continued decline through June would represent the longest streak since 1999.