Sunday, October 18, 2015

2015-09 Relative Price Trends

In September, consumer and purchaser prices maintained their previous levels.  Consumer prices increased 1.6% over the last twelve months.  This rate of increase came down from 2.0% in August.  Purchaser prices fell 6.8% over the same period, which exceeded the rate of 6.6% seen in August.  This is the fastest decrease since November, 2010.

Based on this metric, China has been in a recession for 46 months.  The other metrics followed on this blog, such as relative equity trends and stock market valuations, are also showing declines in economic activity.