China has one economic problem after another: the country recorded deflation in July

Prices fell by 0.3% y/y in July. This is the first price drop of the year. Deflation shows that the economy has problems with demand.

Experts write that deflation and weak demand are consequences of the property market crisis. Yesterday, China's largest private property developer Country Garden defaulted on two international bond payments. And a few years ago, Evergrande declared bankruptcy.