Posted 2/8/2024, 8:55:00 AM
China's consumer prices see steepest drop since 2009, but recovery expected soon
- China's consumer prices fell 0.8% in January year-over-year, the steepest drop since September 2009
- The downturn was largely due to seasonal factors and may have already bottomed out
- Food prices, especially pork, drove much of the decline
- Prices are expected to rise from February onwards due to holiday demand and easing COVID-19 impacts
- Preliminary data shows more people traveling for Lunar New Year in 2023 than pre-pandemic in 2019, pointing to buoyant consumption
