China’s already “tortuous” recovery from the Covid pandemic continued to stall today as fresh data indicated that domestic demand remained depressed. Figures out this morning showed that the world’s second largest economy slid into deflation in July for the first time since February 2021, with the consumer price index (CPI) falling 0.3 percent year-on-year. CPI had been hovering around zero for months before. Deflation refers to falling prices for goods and services. It can be hugely damaging for an economy…
