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China’s slowing wholesale deflation takes pressure off central bank

August 9, 2016 by · Leave a Comment 

By Elias Glenn and Yawen Chen BEIJING (Reuters) – China's factory price deflation moderated further in July, with prices falling at their slowest pace in two years, taking pressure off the central bank to cut rates as policymakers turn their focus to structural reforms and ballooning credit. A government-led building spree has increased demand for construction materials, but higher prices are also due in part to speculation in China's commodities futures market, which has pushed up Shanghai rebar futures up by 50 percent this year. …

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China’s slowing wholesale deflation takes pressure off central bank