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China consumer prices slump again, deepening deflation worries as demand stays weak

  • China's consumer price index fell 0.1 percent year on year in May, marking the fourth consecutive month of decline.
  • Persistent deflationary risks stem from sluggish domestic demand, oversupply, and ongoing uncertainty in US-China trade relations.
  • The National Bureau of Statistics noted the main cause of the CPI fall was a decline in energy prices, while hotel room prices rose 4.6 percent due to stronger tourism.
  • Producer or factory gate prices dropped 3.3 percent year on year, exceeding analyst expectations of a 3.2 percent decline.
  • Upcoming US-China trade talks in London on Monday offer cautious optimism, but the deflationary trend suggests the need for stronger domestic demand stimulus.
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Chinese consumer prices continue to fall as US trade talks loom

Chinese consumer prices fell for the fourth straight month in May, data showed Monday, as the world's second biggest economy struggles with sluggish spending and global trade turmoil.

·Missoula, United States
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NBC LA broke the news in Los Angeles, United States on Sunday, June 8, 2025.
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