Is the Chinese Producer Price Index decreasing for 2009?

Yes the Chinese Producer Price Index has decrease in 2009. At the end of February the PPI had decrease by 4.5 percent y/y which was the third straight month of decline reported by the National Bureau of Statistics. news.xinhuanet.com/english/2009-03/10/co... In June the PPI had decrease by 7.8 y/y percent for manufactured goods asia.xorte.com/0,5,China-Producer-Price-... At present China's PPI contracted to 2.1 percent y/y after falling 5.8 percent y/y in October https://economy.com/home/login/ds_proLogin_4.asp... If the PPI is decreasing does that mean the economy is slowing down?Yes.

If manufactures are not exporting goods and bringing in foreign income in to the country this would slow down the country economic growth. If the manufactures have a decrease in sales it would lead to a negative affect on the company and also the country The company would have to lay off people which may cause high employment in the country Foreign exchange is vital for the continued growth of a country and if their is less exports that means less foreign exchange for the country to use for its own personal use. This would lead to inflation which may cause an erosion in the purchasing power of money for the country and also other negative effects for the country ----quote---- Inflation can have positive and negative effects on an economy.

Negative effects of inflation include a decrease in the real value of money and other monetary items over time; uncertainty about future inflation may discourage investment and saving, and high inflation may lead to shortages of goods if consumers begin hoarding out of concern that prices will increase in the future. Positive effects include a mitigation of economic recessions,5 and debt relief by reducing the real level of debt. ----quote---- Information quoted from http://en.wikipedia.org/wiki/Inflation.

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