China Deflation Provides Limited Relief for Global Central Banks
- Consumer, producer prices both decline for 1st time since 2020
- Officials say CPI contraction likely to be temporary
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China’s consumer and producer prices fell together for the first time since 2020, a deflation cycle that could give global central banks some help in fighting inflation in their own countries but signals a worsening outlook in the world’s second-largest economy.
The consumer price index registered its first decline in more than two years, falling 0.3% in July from a year earlier, the National Bureau of Statistics said Wednesday. Producer prices fell for a 10th consecutive month, contracting 4.4%.