To understand why, consider the dilemma facing Jiangmen Luck Tissue Mfy Ltd, now caught in a squeeze between surging wages and tepid demand. Now, with margins razor thin, it’s weighing the first price increases since 2010. For the world economy, decisions from companies like Jiangmen Tissue to stop cutting prices – and even raise them where demand allows – removes a source of disinflationary pressure. To be decided is whether China, the factory to the world, swings from becoming a drag on consumer prices to a source of pressure nudging them higher. At Jiangmen Luck Tissue, Zhao is watching to determine whether the market can withstand a price hike.

Source: The Star November 01, 2016 09:31 UTC