Inflation in China : muted, reflecting weak demand; near-term global spillover limited

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      <subfield code="a">Inflation in China is muted, reflecting soft domestic demand. We flag rising risk of a liquidity trap in China, a factor in our decision to keep our full-year GDP growth forecast unchanged, even after a stronger-than-expected first quarter result. The low-inflation and subdued domestic demand will have limited impact on global growth and inflation; and marginal upside risk for L&H insurers </subfield>
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