China’s Economy Faces Deflation as Consumer Prices Drop

China is grappling with deepening deflationary pressures as its consumer prices fell below zero in February 2025, marking a significant downturn in its economic landscape. According to the Financial Times, the consumer price index (CPI) dropped by 0.3% year-on-year, signaling a shift towards deflation that could have broad implications for global markets. This development comes amidst efforts by the Chinese government to stimulate economic growth and stabilize prices.

CNBC reports that this deflationary trend is a cause for concern, as falling prices can lead to reduced consumer spending and lower business revenues, potentially exacerbating economic slowdown. Reuters highlighted that the decline in consumer prices is part of a broader pattern of economic challenges facing China, including sluggish domestic demand and ongoing trade tensions.

The Associated Press noted that the Chinese government is closely monitoring the situation and is expected to implement further measures to counteract the deflationary pressures. Analysts are watching closely to see how these developments will impact China's economic policies and its position on the world stage.

• China
• Consumer Price Index
• Deflation

Detailed China's consumer prices in February

China’s consumer prices fall for first time in over a year

4 weeks ago

- ft

China's consumer inflation turns negative for the first time in 13 months

4 weeks ago

- cnbc

China's deflationary pressures deepen in February

4 weeks ago

- reuters

Consumer prices fell in China in February and remain flat in a sluggish economy

4 weeks ago

- apnews

China’s Inflation Declines Below Zero for First Time in Year

4 weeks ago

- bloomberg