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China Is Close to First Consumer Price Deflation Since 2009

  • Declines in prices driven by recovery in pork supply
  • Central bank has signaled it wants to withdraw policy stimulus
Pork Market in Shanghai as China's Pork Hunger Stays Strong With More Dining at Home
Photographer: Qilai Shen/Bloomberg

China could post its first year-on-year decline in consumer prices in over a decade, but that trend is likely to be short-lived and have limited impact on monetary policy.

The official consumer price index hasn’t posted a negative reading since 2009, when the economy was struggling with the fallout from the global financial crisis. A government report due Wednesday will likely show zero inflation in the economy in November, according to the median estimate of economists, with at least five of them predicting a decline.