The outlook for prices is deteriorating despite a more upbeat view of the world’s second-biggest economy after China and the US agreed to a temporary reduction of the punishing tariffs they’ve imposed against each other. Gross domestic product is forecast to expand 4.5% this year, based on a survey of 67 economists and analysts conducted over the past week, up from the median estimate of 4.2% in the previous poll.
Economists expect deflationary pressure to get worse in China, even as they improve forecasts for growth and exports this year after a truce in the trade war with the US.
Consumer prices will likely increase by just 0.3% in 2025 from a year ago, the lowest projection since Bloomberg began polling the question in 2023 and down from the 0.4% predicted in April. China has seen economy-wide prices falling for two straight years, with consumer inflation below zero for the past three months.
