China on the edge of deflation, PPI fell at its fastest pace

China’s economy teetered on the brink of deflation as its producer price index (PPI) fell at its fastest pace in over seven years in June. The consumer price index (CPI) was unchanged y-o-y, compared with the 0.2% gain seen in May. Deflation is a general decline in prices for goods and services, however, experts believe it can aggravate recessions.