Peering into the deflationary abyss

While the West fights inflation, prices in China are falling as its growing debt bubble suffocates the economy

With its property sector in a funk, local governments on the brink of insolvency, and its consumers battening down, China is on the brink of a deflationary spiral.

The National Bureau of Statistics reported Monday that the country’s producer price index fell 5.4% in June from the same month of 2022, the ninth straight month of declines and the steepest s…