2023-08-09 11:26:18
China’s July consumer price index fell 0.3% compared to the same period last year, turning negative for the first time in two years and five months.
Producer prices also fell 4.4 percent, the National Bureau of Statistics of China announced today (9th).
It is the first time since February 2021, right following the outbreak of the novel coronavirus, that China’s consumer price index has been negative compared to the same period last year.
Economists have warned of a growing risk of deflation, in which prices continue to decline over time.
‘Archyde.com’ news agency analyzed that the Chinese economy, which started vigorously for a while in the first quarter, is slowing down as domestic and foreign demand weakens following the new corona crisis and government policies to stimulate the economy do not work properly.
There is growing anxiety that China is entering an era of slow growth similar to Japan’s ‘lost decades’ period, when consumer prices and wages have stagnated for a generation, the news agency said.
VOA News
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