China’s consumer prices experienced a further decline in August, according to the National Bureau of Statistics. The consumer price index (CPI) decreased by 0.4 per cent year-on-year, exceeding economists’ forecasts of a 0.2 per cent drop, as reported in a Reuters poll. This figure remained unchanged from July, highlighting ongoing deflationary pressures within the Chinese economy.
On a month-to-month basis, the CPI showed no change, contrasting with a 0.4 per cent increase in July. This also fell short of market expectations, which had anticipated a 0.1 per cent rise. These figures suggest that consumer demand remains weak, despite government intervention.
In related data, the producer price index (PPI) also reflected deflationary trends, although at a slightly moderated pace. The PPI fell by 2.9 per cent year-on-year in August, a smaller decrease compared to the 3.6 per cent decline recorded in July. This figure aligned with economists’ projections. Chinese policymakers are actively trying to manage excessive competition and price reductions, particularly in key industrial areas, to stabilise the economy.
