Inflation in China is stagnant, and producer prices have been declining for 35 months. How does this affect global competition?

According to the National Bureau of Statistics of China, the Consumer Price Index (CPI) decreased by 0.4% compared to the same period last year. The Producer Price Index (PPI) also fell by 2.9%. This indicates that the deflation trend continues.

Food prices decreased by 4.3%. However, core inflation, excluding food and energy prices, recorded an increase of 0.9%. This shows how consumer spending is affected.

Due to the ongoing deflation trend, the Chinese government has lowered its inflation target to 2% this year, the lowest since 2004.

Producer prices have also been declining for 35 months. Weak domestic demand and the tariff policy of the US continue to negatively impact the Chinese economy.