China Slides to Brink of Deflation, Adding Stimulus Urgency
- CPI was 0% y/y in June, lowest rate in more than 2 years
- Producer price deflation deepens to worst since December 2015
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China’s consumer inflation rate was flat in June while factory-gate prices fell further, fueling concerns about deflation risks and adding to speculation about potential economic stimulus.
The consumer price index was unchanged last month from a year earlier, according to data released by the National Bureau of Statistics on Monday. That was the weakest rate since February 2021, when slumping pork costs dragged on the index.