China’s consumer prices fall in April, fuelling fears of deflation
The country’s consumer price index dropped by 0.1 per cent last month as trade war raises concerns over deflationary pressures
China has reported a drop in consumer prices in April, unwelcome news as the country scrambles to battle deflation wrought by sky-high tariffs levied on shipments between the world’s two largest economies.
The national consumer price index (CPI), a key gauge of inflation, edged down by 0.1 per cent year on year last month, according to data released by the National Bureau of Statistics on Saturday.
Although the trade war may ease to a degree as China considers entering negotiations with the United States, tariffs remain prohibitively high and continue to stifle bilateral trade, leaving Chinese manufacturers with mounting stockpiles of unsold goods.
Food prices declined by 0.2 per cent from a year earlier, while service prices rose by 0.3 per cent, per the statistics bureau.
Prices for other goods and services and clothing rose by 6.6 per cent and 1.3 per cent respectively, while housing saw an increase of 0.1 per cent.