China: consumer prices start to rise again after several months of deflation

2024-03-09T16:17:40.617Z

Highlights: After six months of deflation, the month of February marks the return of rising consumer prices in China. Inflation is estimated at 0.7% (compared to predictions of 0.3%) by the national statistics office. The return of price increases is observed in the education, culture, entertainment, services and even clothing sectors. However, it is too early to talk about the end of deflation according to some economists. China is penalized by a major real estate crisis and high youth unemployment.

After six months of deflation, the month of February marks the return of rising consumer prices in China. Inflation is estimated at 0.7% (against predictions of 0.3%) by the national office…

China: consumer prices start to rise again after several months of deflation

After six months of deflation, the month of February marks the return of rising consumer prices in China.

Inflation is estimated at 0.7% (compared to predictions of 0.3%) by the national statistics office.

Experienced as a burden in many economies, this price increase was eagerly awaited in China.

Yen, the Chinese currency (illustrative image).

路透社 REUTERS/Petar Kujundzic/Files

By: RFI Follow

The return of price increases is observed in the education, culture, entertainment, services and even clothing sectors.

This is bad news for Chinese consumers, but a good signal for the Chinese economy and its businesses, because the drop in prices, particularly in food, has not yet allowed a sufficient recovery in consumption. to run the factories satisfactorily.

Prices down since July

Since last July, prices in China have been in constant decline, going against the trend of what the rest of the world's major economies are experiencing.

However, it is

too early to talk about the end of deflation

according to some economists.

Furthermore, the factors explaining the economic gloom are broader.

China is penalized by a major real estate crisis and high youth unemployment.

In this context, economic subjects are at the heart of the annual sessions of Parliament which are being held this week.

Objective set to achieve 5% growth in 2024. Among the measures discussed: the implementation of a more proactive tax policy or the postponement of the legal retirement age.

China: consumer prices start to rise again after several months of deflation

China: consumer prices start to rise again after several months of deflation

Prices down since July

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