China’s Economic Pressures Mount as Deflation Worsens

In November, China’s consumer prices fell by 0.5% year-on-year, marking the steepest decline in three years and deepening deflation concerns. This drop, exceeding forecasts and previous months’ trends, compounds existing economic challenges, including a property sector crisis, weak trade, and a slow recovery from prolonged Covid restrictions, amidst a backdrop of subdued consumer demand and historically low economic growth targets.