China Slips Into Deflation as July's Consumer Prices Drop 0.3%, Export Plummets for Third Consecutive Month
China's economic challenges deepen as it enters deflation, with June's annual inflation rate falling to -0.3 per cent.
China's economic challenges deepen as it enters deflation, with June's annual inflation rate falling to -0.3 per cent. Producer prices continue to decline for the ninth consecutive month, sinking by 5.4 per cent in June, signalling the ongoing struggle to revive demand and stimulate growth in the world's second-largest economy. Reportedly, consumer prices remain stagnant, failing to meet expectations and are driven by a 7.2 per cent drop in pork prices. Amid underwhelming inflation data, experts suggest that China may require more robust policy support to sustain its post-"zero-Covid" recovery efforts. Additionally, trade numbers for July reveal a concerning trend, with exports plummeting by 14.5 per cent and imports dropping by 12.3 per cent, reflecting weakening domestic and foreign demand, a real estate crisis, and geopolitical tensions. China GDP Growth: Chinese Economy Grew 6.3% in the Second Quarter, Lower Than Expected as Momentum Slows.
China's Economy Faces Deflation and Declining Trade
BREAKING: 🇨🇳 China enters deflation, as June's annual inflation rate falls to -0.3%.
— The Spectator Index (@spectatorindex) August 9, 2023
(The above story first appeared on LatestLY on Aug 09, 2023 09:22 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
