Deflation emerges in China amid ongoing economic challenges

Posted on November 13, 2023   |  

In October, China faced a new bout of deflation, making it difficult to stimulate the economy by promoting spending within the country.

The National Bureau of Statistics revealed a 0.2% drop in consumer prices in October, following 2 months of nearly stable prices.

Producer prices continued their 13-month-long decline, dropping by 2.6% in October, which was a slight improvement compared to the anticipated 2.7% decline.

A housing market slowdown reduced consumer confidence, and a significant drop in global commodity prices from the previous year contributed to the country's low inflation.

China has been grappling with persistent issues in its consumer price index, with deflationary pressures first appearing in July and persisting throughout the year.