Beijing, Oct 2025
China’s consumer prices fell more than anticipated in September, reinforcing concerns that the world’s second-largest economy remains mired in deflationary pressure amid sluggish domestic demand and global trade uncertainty.
Key Figures:
The Consumer Price Index (CPI) declined by 0.3% year-on-year, exceeding economists’ forecast of a 0.2% drop. Month-on-month, prices edged up a modest 0.1%. Meanwhile, the Producer Price Index (PPI) fell 2.3%, marking another month of factory-gate deflation.
Economic Signals:
The data, released by the National Bureau of Statistics, underscores persistent weakness in consumer sentiment and industrial activity. Analysts warn that prolonged deflation could dampen corporate profits, delay investment, and complicate Beijing’s efforts to stimulate growth.
Policy Implications:
While the People’s Bank of China has introduced targeted easing measures, including rate cuts and liquidity injections, economists suggest broader fiscal stimulus may be necessary to revive demand and stabilise prices.
Global Impact:
China’s deflationary trend could ripple through global supply chains, affecting commodity prices and export markets. Investors are watching closely for signs of further intervention from Chinese authorities.
(Source – CNBC)
—Agencies
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