China consumer prices drop more than expected in September
Pedestrians visit Huawei Technologies Co. in Shenzhen, China, on Wednesday, October 8, 2025. passing by the flagship store.
Qilai Shen | Bloomberg | Getty Images
While consumer prices in China fell more than expected in September, the continuation of deflation in producer prices revealed the impact of stagnation in domestic demand and trade concerns on consumer and business confidence.
The consumer price index decreased by 0.3 percent in September compared to the previous year. Office for National Statistics data showed There was a sharper decline on Wednesday than economists had predicted a 0.2% decline. Prices increased by 0.1% monthly.
Core CPI, which excludes volatile food and energy prices, increased by 1.0% compared to the previous year, reaching its highest level since February 2024, according to data from Wind Information.
China’s producer price index fell 2.3% from a year ago, in line with economists’ forecasts. official data showed.
The decline in producer prices has continued for almost three years and is hurting the profitability of producers who are forced to contend with weak consumer confidence and production disruptions resulting from U.S. trade policies.
US tariffs are squeezing exports as weak consumer demand weighs on the world’s second-largest economy, which is struggling with a protracted housing crisis and stagnant household spending.
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