Customers shopped at a supermarket in Jinzu City, Shandong Province, East China on August 9, 2023.
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Manufacturer prices in China 3.6% decline in June Starting a year ago, it marked the biggest decline in nearly two years, as a deepening price war in the economy has been in trouble with a weakening consumer demand.
according to National Bureau of Statistics data Wednesday showed signs of early recovery after four consecutive months of declines.
According to a Reuters poll, economists predict flat reading compared to the same period a year ago.
Core CPI deprived food and energy prices, up 0.7% from the same period last year, the biggest increase in 14 months, according to NBS.
According to LSEG data, deflation in producer prices is worse than the 3.2% decline expected in Reuters polls and marks the biggest drop since July 2023. Since September 2022, PPI has been in a deflation record for years.
“Without strong policy stimulus, it’s hard to escape the ongoing deflation spiral.
“Decision makers will keep waiting until the exports drop sharply,” Hu added.
Last week, Chinese policymakers criticized Chinese companies for their excessive price competition to attract consumers at the highest economic policy meeting chaired by President Xi Jinping, as the slam of U.S. tariffs threaten the feasibility of selling to the world’s largest consumer market.
Beijing promise Tighten regulations on such aggressive price cuts This cannot affect consumer behavior while integrating the profitability of the company.
“Organizations should be directed to improve product quality and to support an order divided from outdated production capacity.” Chinese state-supported newspapers sayquote the meeting.
Profits of industrial companies Slump 9.1% in May Starting a year ago, marking the steepest decline since last October.
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