China Deflation Fears Rise as Demand Weakens on Covid Outbreaks
- October PPI is seen falling for the first time in 22 months
- Growth in consumer prices likely moderated last month too
Trucks pass through a checkpoint in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China is facing increasing deflation pressure as Covid outbreaks and controls cut demand and the falling prices of some commodities put pressure on companies to lower prices.
The producer price index likely fell into deflation in October for the first time in nearly two years, according to the median estimate in a Bloomberg survey of economists ahead of data due Wednesday. The index is expected to have dropped by 1.6% from a year earlier, after gaining 0.9% in September. Consumer price growth also likely moderated to 2.4% from September’s 2.8% gain.