Oct 13 V7N- China's consumer inflation rate slowed to 0.4% year-on-year in September, down from 0.6% in August, reflecting fragile demand in the world’s second-largest economy. This figure fell below economists' forecasts and comes amid efforts by Chinese authorities to stimulate domestic consumption and support the property sector. The government has announced a significant fiscal stimulus package, including the issuance of special bonds to shore up banks and the real estate market.

In contrast to many Western economies grappling with high inflation, China has been battling low or negative price growth. The country experienced deflation at the end of 2023, with consumer prices contracting for several months. Factory-gate prices also declined by 2.8% in September, extending the deflationary trend in industrial production.

Despite these challenges, Beijing maintains that its annual growth target of around 5% remains attainable, although this outlook is clouded by the ongoing property crisis and high youth unemployment. The stimulus measures, including lowering mortgage interest rates, are aimed at driving a recovery, but achieving a full post-pandemic rebound remains uncertain.

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