China CPI Fell Back into Deflationary Territoryđ„Ž
All was quiet on the macro front yesterday, with little US data releases of note, though China did continue to disappoint once again by reporting CPI that fell into deflationary territory for the first time since 2021. CPI came in at -0.3% YoY (+0.2% MoM), with large drops seen in food prices, though the continued weakness in consumer confidence certainly does not bode well for the inflation outlook going forward either.
The fall in China CPI sticks out in an era where most DM central banks are trying to arrest pricing pressures on their home soils, and even the historically maligned Japan has seen a healthy and sustained jump in CPI in their post-covid recovery.
