China's Inflation Reaches Near-Zero Amid Uneven Recovery

Inflation in China fell to 0.1% YoY in April, the lowest in over two years, due to a decline in food and beverage prices. Analysts are warning about the dangers of deflation and proposing cash handouts to push consumer demand. Li Daokui, a professor of economics at Tsinghua University, has called for the government to deliver cash handouts to citizens to spur demand and avoid deflation.