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 China suffering severe deflation

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9m2w
post Jun 11 2025, 02:38 PM

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JohnL77

Ini baru risk of deflation

Consumer prices, energy prices, ex factory prices

Luckily services and other essentials still got inflation
9m2w
post Jun 11 2025, 02:42 PM

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QUOTE(ipohps3 @ Jun 11 2025, 02:38 PM)
so when consumer price increase only good?

means more expensive stuff? inflation?

so Malaysia Price Hike is good then?

been questioning how the world measure GDP growth. mostly are just BNPL and inflation jer these day. no real improvement.
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If prices go up following the supply curve meaning got healthy non artificial demand usually its a good thing

Ppl are more affluent and can afford more , supply can keep up, prices on the up. When demand far out strip supply , prices will shoot up but not necessarily bad, ppl again got alot of money chasing after too few goods

What we dont want is during those covid and post covid China lockdown and Ukraine war starting inflation. That is supply side inflation, cost is going up forcing producers to increase price for same or dwindling demand.


9m2w
post Jun 11 2025, 02:50 PM

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QUOTE(ipohps3 @ Jun 11 2025, 02:43 PM)
so Malaysia Price Hike is good?
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Technically nope

Price hike because of supply side inflation is bad but prices wont go down until demand goes down.

But domestic and private consumption rises so there is a buffer somewhere that is fueling this. Wages, ppl spending wisely (channelling from less important A to B) or even EPF account 3. Or some biz have been able to buffer the costs better than those that come out in newspaper rising prices.





9m2w
post Jun 11 2025, 03:00 PM

Victoria Concordia Crescit
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QUOTE(ipohps3 @ Jun 11 2025, 02:53 PM)
the slight inflation of 2% yearly is what world order has set humans on.
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Like the poster said above

Avoid hyperinflation, avoid wide scale deflation

Those are the extreme ends of the supply curve. Heck maybe supply curve also cannot cover

That is when shit hit the fan in the economy and nothing makes sense



 

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