China’s deflation worsens as economic pressures mount

China’s deflation (2)(3)(4) worsens as economic pressures mount China’s deflation worsens as economic pressures mount Yes, you should be worried not in the short run but in the middel and long run. If you ñike China or not is not important but China is the world factory and all or almost all of our goods, yes not bads ;), is made in China or needs components made in China even if Trump dislikes it. (1) Trump (2) Deflation is bad news for the economy and your money. (3) Deflation is when consumer and asset prices decrease over time, and purchasing power increases. Essentially, you can buy more goods or services tomorrow with the same amount of money you have today. This is the mirror image of inflation, which is the gradual increase in prices across the economy. While deflation may seem like a good thing, it can signal an impending recession and hard economic times. When people feel prices are headed down, they delay purchases in the hopes that they can buy things for less at a later date. But lower spending leads to less income for producers, which can lead to unemployment and higher interest rates. This negative feedback loop generates higher unemployment, even lower prices and even less spending. In short, deflation leads to more deflation. Throughout most of U.S. history, periods of deflation usually go hand in hand with severe economic downturns. (4) China's consumer prices fall fastest in 3 years, factory-gate deflation deepens