China faces deepening deflation risk as consumer prices slide again
Edited By WION Video Desk
Published: Jun 09, 2025, 12:06 IST | Updated: Jun 09, 2025, 12:06 IST
Deflation continues to challenge China’s economy as consumer prices dropped for a fourth straight month, falling 0.1% in May.
Despite national holidays and price cuts from companies like BYD, domestic demand remains weak.
Factory prices plunged 3.3%, the steepest drop in nearly two years.
Analysts warn of worsening deflation and slowing growth in the second half of 2025, with the IMF forecasting zero inflation for the year — the weakest since 2009.
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