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China’s consumer prices fall more than expected in August as deflation woes persist

China's consumer price index fell 0.4% year-on-year in August, while the producer price index decline narrowed to 2.9%, signaling persistent deflation amid weak domestic demand.

  • China's consumer price index fell 0.4 percent year-on-year in August, continuing deflationary pressure in Beijing.
  • This decline followed no change in July's CPI and aligned roughly with a 2.88 percent drop projected by the Wind poll.
  • The producer price index also fell 2.9 percent in August, marking 35 consecutive months of decline amid weakening domestic demand.
  • NBS statistician Dong Lijuan said the CPI drop resulted from a higher last-year comparison and lower food price rises, while core CPI rose 0.9 percent.
  • Persistent price declines reflect supply-demand imbalances, weak consumer demand, and raise uncertainty over China's economic recovery despite government interventions.
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China's consumer prices fell 0.4 percent year-on-year in August.

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El Economista broke the news in on Tuesday, September 9, 2025.
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