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10 Sep 2025

International Economy

China’s CPI in August 2025 returned to contraction, while the country’s ‘anti-involution’ policy helped slow the decline in PPI (Business Brief No.4192 Full Ed.)

คะแนนเฉลี่ย
  • China’s Consumer Price Index (CPI) turned negative to (-)0.4 percent YoY, due to the high base effect of food prices in the previous year, including those of eggs and fresh vegetables. Meanwhile, core inflation rose to 0.9 percent YoY. 
  • The Producer Price Index (PPI) in August 2025 contracted for the 35th consecutive month, but at a slower pace of (-)2.9 percent YoY, down from (-)3.6 percent YoY reported for July 2025. The PPI for ferrous metals, one of the industries targeted by China’s ‘anti-involution’ policy to curb ‘destructive competition’, also saw a slower contraction. 
  • Given this, KResearch expects China’s inflation to remain low for the rest of 2025, with deflationary pressures continuing to weigh on domestic spending and the Chinese economy, along with the influx of cheap Chinese goods into Thailand.

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International Economy