Story perspectives

China Faces Deflation as Consumer Prices Drop 0.4%

9/10/2025

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Summary

Story summary

China's consumer prices fell 0.4% in August, surpassing the expected 0.2% decline, indicating ongoing deflation.
The producer price index (PPI) decreased by 2.9% year-on-year, an improvement from July's 3.6% drop.
Core inflation rose to 0.9%, the highest since February 2023, reflecting some demand stimulus.
Food prices dropped 4.3%, contributing to the overall CPI decline.
Policymakers are introducing measures, such as interest subsidies for consumer loans, to stimulate consumption.

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Story summary

China's consumer prices fell 0.4% in August, surpassing the expected 0.2% decline, indicating ongoing deflation.
The producer price index (PPI) decreased by 2.9% year-on-year, an improvement from July's 3.6% drop.
Core inflation rose to 0.9%, the highest since February 2023, reflecting some demand stimulus.
Food prices dropped 4.3%, contributing to the overall CPI decline.
Policymakers are introducing measures, such as interest subsidies for consumer loans, to stimulate consumption.