Inflation & Prices
China’s Deflation Problem Worsens on Weak Consumer Prices
- Producer prices have declined for 24 straight months
- China has cut interest rates and ramped up economic support
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China’s deflationary problems became more entrenched in September, with consumer prices still weak and factory gate prices continuing to fall.
The consumer price index inched up 0.4% from last year, although that was boosted above zero only by a jump in fresh vegetable prices. Core CPI rose 0.1% in September, the lowest since February 2021, while producer inflation fell for a 24th straight month, according to data from the National Bureau of Statistics on Sunday. Producer inflation fell 2.8%, year-over-year, slightly more than the 2.6% drop economists had predicted.