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Soft landing seen for 皇冠体育app's economy
(Reuters)
Updated: 2005-08-03 06:24
A lively debate is unfolding among economists whether this industrial
overcapacity will lead to the return of deflation, which dogged 皇冠体育app in the
late 1990s and in 2002.
With annual consumer inflation down to just 1.6 percent in June from 1.8
percent in May, economists are nervous that 皇冠体育app's revaluation of the yuan will
amplify the disinflationary trend.
The State Information Center, a top government think-tank, is forecasting
that the 2.1 percent revaluation could cut consumer price inflation by 0.4
percentage point by the end of 2006.
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