Data from China’s National Bureau of Statistics showed early Wednesday, September 10, that the annual consumer price index (CPI), a measure of inflation, fell to -0.4% in August after showing no growth in July. Expectations were for a -0.2% decline. A 4.3% drop in food prices led the decline in August inflation, compared to a 2.7% decline in July.
Conversely, the core index, which excludes volatile food and energy prices, rose 0.9%, its highest level since February 2024. Prices of household appliances and clothing rose significantly, rising 4.6% and 1.9%, respectively, in August.
Conversely, China’s producer price index (PPI) remained in negative territory, despite a slowdown in contraction to 2.9% year-on-year in August, compared to a 3.6% decline in July, in line with market expectations.