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Deflation weighs on China’s economy

Jul 10, 2025, 5:19am EDT
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A woman looks at vegetables displayed at a stall at an outdoor market in Beijing, China.
Florence Lo/File Photo/Reuters

Falling prices across a range of sectors — from pork to apartments — are weighing on China’s economic recovery.

Producer prices fell the most in nearly two years in June, while consumer goods costs fell month-over-month, despite eking out a narrow yearly gain.

Deflation has especially hit food prices, with pork tumbling 8.5% since last June.

Prices for secondhand apartments have fallen, too, deepening Beijing’s property woes and underlining China’s challenges beyond the US trade war, CNBC wrote.

Experts have sounded the alarm over the economy in recent days, especially destructive price wars, which could spur policymakers to ramp up stimulus efforts, analysts said.

Chart showing China annual consumer price index.
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