Chinese economy out of deflation but faces threat of relapse
Source: Agence France-Presse
Chinese economy out of deflation but faces threat of relapse
Agence France-Presse in Beijing
Sat 9 Sep 2023 04.02 BST
China’s consumer price index rebounded in August as the world’s second-largest economy emerged from deflation, official data released on Saturday suggested, despite sluggish domestic consumption that is complicating its post-Covid economic recovery.
Last month’s CPI, the main gauge of inflation, rose 0.1% year on year, the national statistics bureau said.
China briefly slipped into deflation in July for the first time in more than two years, with prices falling 0.3% year on year.
Analysts surveyed by Bloomberg had anticipated a rebound in August of 0.2% year on year.
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Despite the August rebound, many analysts do not rule out a relapse into deflation in coming months, as China’s main growth engines stall and after youth unemployment reached a record level of more than 20% in June.
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Read more: https://www.theguardian.com/business/2023/sep/09/chinese-economy-out-of-deflation-but-faces-threat-of-relapse
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