China's consumer inflation fell into negative territory for the first time since January 2024, official data released on March 9 showed, while producer prices continued to decline as seasonal demand eased amid cautious spending by households.
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| New official data released on March 9 showed that China's consumer inflation fell into negative territory for the first time since January 2024. (Source: Xinhua) |
China's consumer price index (CPI) fell 0.7% year-on-year in February, reversing a 0.5% increase in January, the National Bureau of Statistics (NBS) said. The decline was sharper than the 0.5% decline forecast by economists in a Reuters poll. Compared to January 2025, China's CPI also reversed a 0.7% increase and fell 0.2%.
The decline in CPI was attributed to lower prices for food, tobacco and alcoholic beverages.
China's producer price index (PPI) also maintained its downward trend, falling 2.2% year-on-year in February 2025. Although it improved slightly from the 2.3% decline in January, the figure still missed the forecast of a 2.1% decline.
The data comes as investors closely watch for signs that China's stimulus measures could spur a recovery in the nation's economy.
The Chinese government has set a 2025 gross domestic product (GDP) growth target of "around 5%" and announced plans to stabilize growth by supporting domestic demand.
Notably, China has revised its annual consumer inflation target from 3% or more in previous years to “around 2%” this year – the lowest in more than two decades. Analysts say the inflation target will act more as a ceiling than a target to hit.
However, economists say the above economic growth targets may be difficult to achieve, especially when domestic consumption remains weak and trade tensions with the US escalate under President Donald Trump.
Source: https://baoquocte.vn/la-n-da-u-tien-trong-13-thang-kinh-te-trung-quoc-gap-tinh-trang-nay-306941.html
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