China May Struggle to Hit Inflation Target Even After Cutting It

China set its inflation target at the lowest level in over 20 years, but even reaching this new goal won’t be easy.

Beijing is aiming for around 2% consumer inflation this year, down from the previous 3% target. This signals Chinese leaders are finally recognizing the deflationary pressures weighing on the world’s second-largest economy, with consumer inflation stuck at just 0.2% for the past two years.