China: Exit from deflation for the first time since August 2023

The consumer index was increased to 0.7% in February on an annual basis, showing the country’s exit from deflation for the first time since August 2023, according to official data announced today (9,3.2024). Unlike the great Western economies affected by high inflation, the second largest economy in the world (China) had recorded in January the largest price drop in 14 years, China split into deflation in July 2023, for the first time since 2021. After a temporary recovery in August, prices were in constant decline since September. Source: RES – ICM