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11 Mar 2024

International Economy

China’s inflation in February 2024 turned positive for the first time in six months (Business Brief No.4043 Full Ed.)


​​China saw inflation uptick in February 2024 thanks to temporary factors, but deflation risks remain

  • Driven by the Chinese New Year festival, China’s consumer price index rose for the first time in six months to 0.7 percent YoY in February 2024, up from (-)0.8 percent YoY recorded in the previous month.
  • Risk of deflation in China depends upon three key factors: producer prices showing no signs of recovery, the ongoing downturn in the property sector, and the rebound in domestic demand.
  • KResearch holds the view that the accelerating inflation in February 2024 was due to temporary factors. For the remainder of the year, inflation in the country will remain under pressure but is expected to return gradually. According to Bloomberg Consensus, China’s 2024 full-year inflation is projected to be 0.8 percent YoY.


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International Economy