China’s consumer prices fell more than expected in August while deflation in wholesale prices persisted, as calls mounted for Beijing to ramp up measures to bolster sluggish domestic demand and cushion weakening exports growth.
The consumer price index dipped 0.4% last month from a year earlier, according to data from the National Bureau of Statistics released Wednesday, compared with Reuters-polled economists’ forecast for a 0.2% contraction.
Core CPI, which strips out volatile food and energy prices, rose 0.9% from a year earlier, the highest since February 2024, according to Wind Information. Household appliances and the clothing categories saw notable price gains of 4.6% and 1.9%, respectively.
The producer price index dropped 2.9% in August from a year ago, in line with economists’ estimates and has stayed flat on a month-on-month basis.
Chinese authorities said that headline CPI had slipped into negative territory largely due to the high-base last year and lower food prices, while crediting the narrower decline in producer prices in part to Beijing’s efforts in regulating the excessive price competition.
