Indicators
China Deflation Risk Grows as Signs of Economic Weakness Mount
- Slowest core CPI since 2021 boosts case for stronger stimulus
- Weak demand puts China’s growth target of around 5% at risk
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China’s core inflation cooled to the weakest in more than three years, fueling calls for greater efforts to boost household spending as weak demand puts the annual growth target under pressure.
The consumer price index excluding volatile food and energy costs rose just 0.3% in August from a year earlier, the least since March 2021, the National Bureau of Statistics said Monday. The broader CPI increased 0.6%, missing expectations even though it was buoyed by higher food costs due to bad weather last month.