Fresh inflation data from China highlights a dilemma that is the polar opposite of what the US is experiencing. The reported CPI fell short of consensus forecasts, while the PPI sustained its negative trajectory. Conversely, upcoming data due on Friday in the United States is anticipated to show the onset of a sixth consecutive year where inflation sits above the target set by the Federal Reserve. For China, however, the struggle involves the reverse dynamic. Low inflation there acts as both a symptom of and a catalyst for sluggish domestic demand, which continues to put pressure on economic growth.

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