China's consumer inflation slows further in December, stoking deflation worries

China’s consumer price inflation in December decreased to 0.1% year on year, raising deflation concerns as headline inflation growth aligned with estimates but was lower than November’s rise. Core CPI, excluding food and energy prices, increased by 0.4% year on year, with a flat month-on-month CPI driven by a decline in food prices, particularly fresh vegetables and fruits. Despite stimulus measures, weak domestic demand persists, with China’s economy facing challenges including property sector headwinds and trade tensions, as analysts anticipate ongoing struggles with consumer spending appetite and the looming specter of deflation.

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