China Slips Back Into Deflation as Pork Prices Plunge
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China's consumer price index fell 0.2% in October, indicating the country has slipped back into deflation. This was mainly due to plunging pork prices.
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Core inflation, excluding food and energy, fell even more sharply, by 0.6%, signaling weak consumer demand.
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Deflation is concerning as it can lead to a sharp economic slowdown. However, some dispute China is experiencing true deflation.
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China is facing challenges including a troubled property market and reluctance among businesses and consumers to spend.
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Producer prices fell 2.6%, reflecting uncertainty around China's economic recovery. Policymakers may offer more support.