China continues to face deflationary pressure

China's consumer price index (CPI) fell 0.3 percent year-on-year in September, while its producer price index also fell 2.3 percent year-on-year, according to a report released by the National Bureau of Statistics of China on October 15.

Prices in China fell less than economists forecast in September, a sign that the world's second-largest economy is still struggling with weak consumer activity.

While deflation may seem good for consumers' wallets, it is a threat to the economy, as households tend to delay purchases in the hope that prices will fall further.

Also according to data released yesterday, China's Producer Price Index (PPI) fell 2.3% compared to the same period last year - showing sluggish domestic demand and trade concerns affecting consumer and business sentiment.

Also according to data released by the General Administration of Customs of China on October 13, China's trade activities in September 2025 grew beyond expectations, despite growing concerns about the tariff war between China and the US.

China’s exports rose 8.3% year-on-year in September 2025, beating Bloomberg’s forecast of a 6.6% increase. This was the strongest growth since March 2025 and far exceeded the 4.4% increase recorded in August 2025. The country’s imports rose 7.4%, while the forecast was for a 1.9% increase.

Zichun Huang, a China economist at research firm Capital Economics, said that while the recovery in trade activity showed Chinese exporters' ability to cope with US tariffs, the latest escalation of tensions with the US still posed some risks.

Source: https://vtv.vn/trung-quoc-tiep-tuc-doi-mat-ap-luc-giam-phat-100251016062306707.htm