China Slides Into Deflation as Consumer, Factory Prices Drop
- Consumer, producer prices both decline for 1st time since 2020
- Officials say CPI contraction likely to be temporary
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China slid into deflation in July, adding pressure on policymakers to step up monetary and fiscal support even as signs that the decline in prices is temporary may limit any stimulus.
The consumer price index dropped 0.3% last month from a year earlier, the National Bureau of Statistics said Wednesday, marking its first decline since February 2021. Economists surveyed by Bloomberg had predicted a 0.4% decline in prices.