China Set to Exit Deflation Cycle in Early 2026, ANZ Analysts Say

AI Briefing

• – China's deflation cycle may end sooner than expected, ANZ analysts predict, citing improved price indicators.
• – The bank projects a return to inflation in 2026, driven by factors such as rising wages and increasing demand.
• – The outlook suggests China's economy is shifting from a deflationary to an inflationary phase.