China's Reflationary Momentum: A Fragile Recovery China's inflation data suggests that the reflationary momentum sparked by a combination of factors, including easing tensions over Iran and booming investment in artificial intelligence, is showing signs of stalling.
Analysts are divided on the prospects for domestic prices, with some optimistic about a fragile recovery from deflation.
The slowdown in consumer price inflation to 1 percent in June, below expectations, indicates that reflationary momentum is losing steam.