China’s consumer prices fall in August at fastest rate since February

China’s consumer prices fall in August at fastest rate since February

Beijing has struggled with weak domestic spending amid a property slump and rising export pressures in recent years.

China consumer prices
The consumer price index, a key inflation gauge, fell 0.4% year-on-year in August, the sharpest drop since February’s 0.7%. (EPA Images pic)
BEIJING:
Consumer prices in China fell last month at their fastest rate in six months, official data showed Wednesday, a sign of persistent deflationary pressure in the world’s second-largest economy.

Beijing has in recent years been battling sluggish domestic spending, dragged down by a prolonged slump in the country’s vast property market as pressure on exports mounts.

The consumer price index – a key measure of inflation – dropped 0.4% year-on-year in August, according to data released by China’s National Bureau of Statistics (NBS).

The reading was lower than the 0.2% fall Bloomberg forecast based on a survey of economists.

It also marked the the steepest decline since February’s drop of 0.7%.

Factory gate prices also dropped in August, the NBS said Wednesday, but at a slower rate than recent months.

The producer price index (PPI), which measures the prices of goods before they enter wholesale or distribution, fell 2.9% last month.

The latest PPI reading improved from the 3.6% fall recorded in July, in line with a Bloomberg forecast.

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