emergentfutures:

Prices are tumbling across the Chinese economy, according to government data released on Monday, as a flood of goods pouring out of the country’s factories and farms exceeds anemic demand from Chinese households and businesses.

The downward trend makes it much harder for businesses to sell enough goods to repay loans that they took out, usually on the expectation of rising prices. Falling prices also discourage investment, which slowed sharply this spring, and give consumers an incentive to delay purchases until prices fall further.

Full Story: New York Times