China is currently experiencing an unusual trend, with negative inflation rates splashed across various price metrics. When consumer prices tumbled in July, the global community raised eyebrows. They did rebound a bit in August, but not enough to alleviate concerns. Food products like pork showcased some of the most drastic fluctuations. However, this decline isn’t isolated to food; sectors such as home appliances and transport are also seeing dwindling prices.

While some areas like tourism are witnessing a price surge, the manufacturing sector paints a grim picture. Prices are dropping across a staggering two-thirds of the primary categories. Even more disconcerting? China’s export prices, which are sagging across an array of products, signaling potential trouble for countries importing Chinese goods.

(via Instapundit)

[Hamid goes on to suggest that this is not a particularly effective strategy for Beijing. I think the greater worry for the US is not the spread of deflation as a trigger for a potential depression (which is a risk), but that Xi Jinping’s regime is getting desperate enough to try this kind of malevolent Hail Mary in economic warfare. — Ed]