China’s Deflation Problem Worsens on Weak Consumer Prices

China’s deflationary problems became more entrenched in September, with consumer prices still weak and factory gate prices continuing to fall.

The consumer price index inched up 0.4% from last year, although that was boosted above zero only by a jump in fresh vegetable prices. Core CPI rose 0.1% in September, the lowest since February 2021, while producer inflation fell for a 24th straight month, according to data from the National Bureau of Statistics on Sunday. Producer inflation fell 2.8%, year-over-year, slightly more than the 2.6% drop economists had predicted.