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China slips into deflation for 1st time in 3 months
China's consumer prices dropped by 0.4% in August 2024, marking the first dip below zero in three months and signaling that deflation is back on the radar.
This fall was steeper than expected and points to ongoing struggles with weak spending at home, according to data from China's National Bureau of Statistics.
Producer prices also fell
Producer prices also fell—down 2.9% compared to last year—though that's a slight improvement over July's numbers.
This marks in its third straight year of price drops for Chinese producers, mainly due to supply-demand mismatches.
With exports slowing (especially to the US) and GDP growth cooling off, China's economy is facing some real headwinds right now.