Sunday 10 Aug/2025 – 08:46 AM
The inflation rate that expresses consumer prices in China stabilized during the month of July, with the decline of recession, in light of the government’s pledge to contain excessive competition.
The National Bureau of Statistics announced today, Saturday, that the consumer price index remained unchanged from its level a year ago, and the average estimates of economists whose opinions surveyed Bloomberg indicated a decrease of 0.1%. The inflation ended a series of four -month declines in June, to turn into a rise, while factories ‘prices continued to shrink for the thirty -fourth month, as the producers’ price index decreased by 3.6%, unchanged from the decline in June.
Classical pressures in China
Price wars enhance the severity of deflationary pressures in China, where consumers’ demand is still fragile.
The government launched a campaign to curb the fierce competition between companies, which led to the erosion of profits and the reduction of wages in the second largest economy in the world.
In its monthly meeting in late July, the Chinese leadership pledged to intensify the management of surplus production capacity in the main industries, but it faces a challenge to revitalize the economy, and it may be necessary to make bolder efforts to enhance local demand.
Chinese expectations unchanged
It also seems that the state campaign did not have an impact on the expectations of people, as the price expectations index, based on a survey conducted by the Central Bank of Families, has decreased since late last year, and a large -scale price index decreased throughout the economy, known as the gross dumping factor, for nine four consecutive, which is its longest chain in decades.
The solid demand for Chinese goods from abroad has helped the economy suddenly withstand in the face of American customs duties, but the profits of industrial companies deteriorate as companies face difficulties to pass the costs up to consumers, in light of the poor purchasing power and decline in morale.
