China’s Inflation Drops to 29-Month Low

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By Douglas A. McIntyre Published

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In another sign that China’s economy has slowed, inflation is at a 29-month low. The country posted a June consumer price increase of only 2.2%. Inflation was only recently a major concern in the People’s Republic, when price increase for commodities that included food in particular were rising in double digits.

The lack of inflation combined with a sharp drop in the country’s purchasing manufacturing index mean the forecasts of only 7% GDP growth in the second quarter are likely to be correct. If the present pattern persists, mostly because of export trouble due to shaken economies in Europe, gross domestic product could drop to a low not posted in the past decade.

“Inflation is dead and growth is by far the main concern in Asia,” said Tim Condon, chief Asia economist at ING Financial Markets in Singapore, according to Bloomberg. Based on his assessment, some of the region’s economies actually may be in retreat.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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