The combination of high debt and falling prices on the once fast-growing fringe of the euro zone would complicate hopes for a wider recovery in the euro zone.

Reports from the disaster zone also suggest a growing anger among the inhabitants of Zhouqu that the warnings were not heeded and that a better disaster action plan had not been put in place.

With inflation now above the European Central Bank's comfort zone and almost double the Bank of England's target, pressure to raise interest rates is growing.