China's deflation a near-term positive for Western central banks: Pimco

Deflationary pressures in China could spill over into global markets, which is potentially near-term good news for Western central banks as they seek to curb inflation, U.S. asset manager PIMCO said on Wednesday. China's consumer sector fell into deflation and factory-gate prices extended declines in July, as the world's second-largest economy struggled to revive demand and a flurry of policies to support the economy failed to shore up activity. The economic deterioration could moderate inflation in China and, increasingly, also in the markets served by Chinese goods, PIMCO Economist and Managing Director Tiffany Wilding said in a note. "Persistent deflation…