Central Banks
China’s Worst Deflation Streak in 14 Years Puts Pressure on PBOC
- Weak demand spurs calls for more stimulus and rate cuts
- Overseas shipments decline for full year, a first since 2016
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China’s consumer prices marked their longest streak of declines since 2009, extending the deflation that may require more government support to reverse. Exports posted their first annual decline in seven years.
The consumer price index slipped 0.3% in December from a year earlier, in line with economists’ expectations for a third straight month of declines. Factory-gate costs dropped 2.7% and have been falling for more than a year because of lower commodity prices and weak demand at home and abroad.