China: the largest economy loses its superb

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12/12/2014 | 02:35 pm
China recently released annual Consumer Price Index. Published up 1.4%, it has reached a 5 years low.
The same index, shows a level of -0.2% for November, a punctual monthly deflationary situation already observed 4 times this year. This confirms the slowdown in domestic consumption of the country, but also has the effect to feed speculations about a further reduction of Chinese monetary policy rates.
Chinese inflation to a 5 years low (white) and slowing GDP growth (yellow):

During the December 11 trading day , the Chinese Communist Party's communication agency, called "Xinhua" said that "the Chinese economy faces persistent difficulties". With these avowed complications, some operators anticipate an expansion of the monetary easing measure initiated in November, enough to wake up the old Chinese credit bubble daemon.
This proved Chinese economy slowing, weighed on the markets questioning the sustainability of the world's largest economic growth. Commodities could continue to be attacked regarding so many uncertainties, oil and copper seem particularly concerned. 
Pierre Gilles de la Londe 2018
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