Chinese consumer prices slip back into decline amid deflationary pressures
Weak domestic demand and industrial oversupply continue to weigh on prices as CPI falls 0.4 per cent in August
China’s consumer prices slipped back into decline in August, highlighting persistent deflationary pressures, while a narrower drop in factory-gate prices suggested Beijing’s “anti-involution” campaign may be starting to take hold.
The national consumer price index (CPI), a key gauge of inflation, fell 0.4 per cent year on year last month, according to data released by the National Bureau of Statistics on Wednesday.
The reading was worse than market expectations of a 0.2 per cent drop in a poll by financial data provider Wind. In July, the CPI remained unchanged from the same month last year.
“By category, the main factor was lower food prices,” she said, adding the core CPI’s year-on-year increase expanded for a fourth consecutive month, thanks to the continued effect of policies aimed at boosting domestic demand.