China’s annual consumer price index, a measure of inflation, fell below zero for the first time in more than a year to -0.7% in February, data from the National Bureau of Statistics showed earlier this week, compared with a 0.5% increase in January, missing expectations for a 0.4% decline.
The core index, which excludes volatile food and energy prices, fell by -0.1%, the first decline since 2021.
In contrast, China’s producer price index (PPI) fell to 2.2% year-on-year in February, compared with a 2.3% decline in January, and compared with expectations for a 2.0% decline.