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China Pledges Crackdown on Price Wars to Combat DeflationChina's President Xi Jinping on Tuesday vowed to tighten oversight of aggressive price-cutting by domestic firms, amid growing concerns over persistent deflation. According to state news agency Xinhua, overcapacity and price wars among Chinese manufacturers affect consumer behavior and risk deepening deflation, which could derail efforts to stabilize the economy. "Enterprises engaging in disorderly low-price competition must be regulated under laws and regulations," said a statement from the Central Financial and Economic Affairs Commission, chaired by Xi. The commission, a key economic policy body, also stressed the need to build a unified national market to support high-quality development. Xi called for better coordination across sectors to strengthen economic momentum and create a more sustainable growth model.
2025-07-02 China Consumer Prices Fall for 4th MonthChina's consumer prices dropped by 0.1% yoy in May 2025, matching the declines seen in the previous two months and slightly outperforming expectations of a 0.2% decrease. This was the fourth straight month of consumer deflation, highlighting challenges from ongoing trade risks with the US, sluggish domestic demand, and concerns over job stability. Non-food prices were flat for the second month in a row, as increases in housing (0.1% vs 0.1% in April), clothing (1.5% vs. 1.3%), healthcare (0.3% vs 0.2%), and education (0.9% vs 0.7%) were offset by a sharper drop in transport (-4.3% vs -3.9%). On the food side, prices fell at a steeper rate (-0.4% vs -0.2%), down for the fourth month. Core inflation, which excludes volatile food and fuel prices, rose 0.6%, marking the highest reading since January and following a 0.5% gain in the prior two months. On a monthly basis, the CPI declined by 0.2% in May, reversing a 0.1% gain in April and indicating the third monthly drop so far this year.
2025-06-09 China Consumer Prices Fall for Third MonthChina's consumer prices dropped by 0.1% year-on-year in April 2025, maintaining the same pace for the second month and matching market expectations. It marked the third consecutive month of consumer deflation, weighed by the combined effects of ongoing trade tensions with the US, weak domestic demand, and persistent employment uncertainty. Non-food prices were flat after the prior 0.2% rise, as increases in housing (0.1% vs 0.1% in March), healthcare (0.2% vs 0.1%), and education (0.7% vs 0.8%) were offset by a sharper drop in transport cost (-3.9% vs -2.6%). On the food side, prices saw their smallest fall in three months, amid a sharp rebound in fresh food costs in the face of extreme weather, supply chain disruptions, and the impact of trade barriers. Core inflation, which excludes volatile food and fuel prices, rose 0.5%, holding steady for the second month. On a monthly basis, the CPI edged up 0.1%, reversing a 0.4% drop in March and recording the first increase in three months.
2025-05-10