Inflation & Prices
China’s Deflation Reprieve Likely Temporary Due to Weak Demand
- Some economists predict inflation gauge will fall this month
- CPI gain in February came as nation enjoyed a long holiday
Shoppers in Shenzhen during the lunar New Year holiday.
Photographer: Gilles Sabrie/BloombergThis article is for subscribers only.
The increase in China’s consumer prices is expected to be short-lived, economists say, as the boost from a long holiday is overshadowed by signs of sluggish domestic demand.
The consumer price index’s 0.7% rise in February beat expectations and was the first advance since August. The price rebound was helped by a Lunar New Year holiday that came later than in 2023, and the return of travel and spending that topped levels from before the pandemic.