Recent economic developments in China are drawing attention with the increasing global competition. The deflation trend in consumer and producer prices is an important indicator for the future of the economy.

According to the National Bureau of Statistics of China, the Consumer Price Index (CPI) decreased by 0.1% compared to the same period last year, while the Producer Price Index (PPI) fell by 3.3%. This indicates that the deflation trend continues.

Deflation means a decrease in consumer prices, which can be a sign of economic stagnation. Notably, core inflation, excluding food and energy prices, recorded an increase of 0.6%.

The Chinese government has lowered its inflation target from 3% to 2% due to the ongoing deflation trend. This is seen as another sign of a weakening economy.

Weak domestic demand and the debt risks of local governments are among the factors negatively affecting the Chinese economy. This situation is becoming more pronounced with the increasing global competition.