Deflation recorded in China for the first time since 2021 – Kommersant
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The consumer price index (CPI) of China in July fell by 0.3% compared to last year, reports Reuters with reference to the data of the National Bureau of Statistics of the country. This is the first time since February 2021 that China has experienced deflation. In addition, China became the first G20 country to experience deflation over the past two years. In August 2021, a decline in consumer prices was observed in Japan.
Economists attribute the decline in prices in China to weak domestic demand and a weaker-than-expected economic recovery from the COVID-19 pandemic. The producer price index has been falling for the tenth month in a row. According to the results of July, it fell by 4.4% compared to last year.
The day before, August 8, China Bureau of Statistics published data on export and import volumes in July. The volume of exports from the country in July amounted to $281.8 billion, thus decreasing by 14.5% compared to last year, which was the most significant drop since the beginning of 2020. Imports to China fell by 12.4% to $201.2 billion, the biggest drop since May 2020.
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