China economy faces growing deflationary pressures

INTERNATIONAL DESK: China’s consumer prices fell in December for the third straight month. Across the whole year of 2023, they rose by the lowest level in 14 years.

The data highlight mounting deflationary pressures in the world’s second-largest economy.

Official figures show CPI dropped 0.3 percent last month from a year earlier. Major factors behind this were a significant fall in prices of items including pork, as well as a drop in prices of automobiles and smartphones.

Prices of furniture and home electronics products also fell on the back of sluggish home sales.

The producer price index fell 2.7 percent, marking a drop for the 15th straight month. The PPI measures changes in prices of goods at factory gates.

CPI for 2023 rose only 0.2 percent from the previous year. That’s the lowest level since 2009 when the index was affected by the global financial crisis.

The Chinese government says it plans to increase domestic demand through fiscal policy and other measures. (NKHW)