Consumer prices in China have plunged into deflation, recording the largest decline since the peak of the global financial crisis in 2009, CNN reported. He added that analysts believed the sharp decline was largely due to seasonal issues and the slowdown may have already bottomed out.
The Consumer Price Index (CPI) fell by 0.8% in January. compared to last year – reported the Chinese National Bureau of Statistics (NBS).
Prices in China
This was the largest decline in the index since September 2009 and the fourth month in a row of declines.
The NBS, as well as some economists, attributed the sharp decline partly to a high comparison base from last year, when prices were particularly high due to holiday demand.
“The New Year falls in February this year compared to the end of January last year, causing base distortions,” said HSBC economists quoted by CNN.
In 2023, the Lunar New Year was celebrated from January 21 to 27 China continental countries, which resulted in an increase in CPI by 2.1%. this month – reported the American portal.
Economists said weak consumer demand in January 2024 also weighed on prices.
Food prices in particular were the main factor dragging the index down last month. The price of pork, a staple of the Chinese diet, fell by 17.3%. compared to last year, which is the largest decline among all consumer products. Vegetable prices dropped by almost 12%. – pointed out CNN.
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