China is showing early signs of reflation as energy costs rise due to the Iran
war, but the IMF says more sustained price gains are needed to confirm a shift
away from deflation. IMF Asia-Pacific director Krishna Srinivasan noted some
inflation indicators have improved, but durability remains unproven. China may
end its prolonged producer price deflation, though broader reflation depends on
stronger wages and corporate earnings. The IMF urges stronger domestic demand
and housing market reforms as exports rise while consumption weakens.
