Hong Kong CNN —The Chinese economy has slipped into deflation, with consumer prices falling for the first time in more than two years in another sign of weakening demand.
The consumer price index (CPI) fell by 0.3% in July from a year ago, according to China’s National Bureau of Statistics on Wednesday.
The producer price index (PPI), which measures goods prices at the factory gate, also dropped by 4.4% in July from a year earlier.
Signs of deflation have become more prevalent in the world’s second biggest economy in recent months, sparking concerns that China could enter a prolonged period of stagnation.
China is also suffering from a prolonged slump in its real estate sector, and weak trade.
Persons:
That’s
Organizations:
Hong Kong CNN, National Bureau, Statistics
Locations:
Hong Kong, China