MS report out today.

CHINA: FREE FALL IN UPSTREAM PRICES TO BRING ABOUT CPI DEFLATION - February 10, 2009

Deflation is under way: In our view, the latest data confirm that the free fall in upstream prices is bringing about rapid disinflation at the consumer level. We believe it will not be long before we see consumer inflation dipping into negative territory, and we forecast 0.8% CPI deflation this year.