Inflation & Prices
China’s Inflation Declines Below Zero for First Time in Year
- Weak reading is reminder of deflationary pressures in economy
- February figures on prices were skewed by seasonal distortions
China has set its inflation target at the lowest level in over 20 years.
Photographer: Raul Ariano/BloombergThis article is for subscribers only.
China’s consumer inflation dropped far more than expected to fall below zero for the first time in 13 months, an assessment skewed by seasonal distortions but also a sign of deflationary pressures persisting in the economy.
The consumer price index declined 0.7% from a year earlier, the National Bureau of Statistics said Sunday, compared with a 0.5% gain in the previous month. That was lower than all but one forecast in a Bloomberg survey of analysts, whose median estimate was for a 0.4% drop.