Factory deflation extended into a 27th month, though the producer price index (PPI) recorded a slower drop of 2.3%. But in a more encouraging sign for policymakers, core consumer price index (CPI) — which excludes volatile food and fuel prices — picked up for a third month to 0.4% from a year ago, reaching the highest level since July.
China’s consumer inflation weakened further toward zero, decelerating for a fourth straight month in a setback for government efforts to stamp out deflation and revive demand by injecting stimulus into the economy.
The consumer price index rose 0.1% from a year earlier, the National Bureau of Statistics said Thursday, compared with a 0.2% gain in the previous month. The reading matched the median forecast of economists surveyed by Bloomberg.
