As usual with China, it is complicated to understand what's really happening there and even more complicated to forecast what will happen next.
Several recent articles about China in The Economist indicated several elements : - wage decrease for an estimated 1/3 of while-collar workers last year, - while wage growth in the private sector slowed to 3.7 % in 2022 from double digit a few years ago, - acceleration of capital outflow (out of China) as investors are now losing both on housing and shares.
Nothing there indicating that deflation will end soon, while the government is still reluctant to put in place a large policy to help households.
