China's leaders are overseeing a spell of deflation, or falling prices, that contrasts with inflationary pressures prevailing elsewhere in the world. While cheaper prices can be a blessing, deflation is a symptom of relatively weak demand and stalling economic growth. Falling housing prices have left many families reluctant to spend while factories keep churning out goods. This has led to the country's longest deflationary streak since the 1960s. Economists say it may signal bigger trouble ahead while rising tariffs on Chinese exports to the United States could dent demand, further aggravating the problem.
