China’s Xi Jinping asked ‘What’s so bad about deflation?’ amid economic slowdown, report says

(Credit: Xie Huanchi—Xinhua/Getty Images)

• Chinese President Xi Jinping was reportedly dismissive about the threat of deflation hitting the economy. While consumers can benefit from falling prices, persistent deflation can also lead to a downward spiral for spending and investment.

The threat of deflation doesn’t seem to worry Chinese President Xi Jinping that much, even as the world’s second-biggest economy continues to struggle with weak growth.