China’s CPI drops to deflation zone again🥴
Yesterday was relatively quiet in terms of macro news, with no noteworthy U.S. economic data released. However, China's data was disappointing again. CPI fell into the deflation zone for the first time since 2021, with CPI -0.3% year-on-year (+0.2% month-on-month). Prices have fallen sharply and continued weakness in consumer confidence has not helped the inflation outlook.
The fall in China's CPI stands out in an era when central banks in most developed markets are trying to ease price pressures at home, even as historically criticized Japan has seen healthy and sustained CPI growth during its post-pandemic recovery.
