Michael Pettis said China’s July CPI data still show entrenched deflationary pressure: consumer prices rose 0.5% y/y, the weakest since January, and fell 0.1% m

Michael Pettis said China’s July CPI data still show entrenched deflationary pressure: consumer prices rose 0.5% y/y, the weakest since January, and fell 0.1% m/m for a third straight month. Weak property and fading growth drivers add to the strain.