May 2025 saw a decline of 0.1% year-on-year for the fourth consecutive month in China's Consumer Price Index (CPI). It mirrored the 0.1% decline recorded in April and slightly exceeded analyst estimates of a 0.2% fall.' Consistent weakness in consumer prices has led to negative readings of the CPI since February 2025, with previous declines measuring 0.7% during February and 0.1% in March and April.
The Producer Price Index (PPI) in China experienced a significant decline of 3.3% in May 2025, marking the biggest drop in 22 months. It exceeded the 2.7% decrease recorded in April and beat the projected 3.2% drop predicted by analysts. Despite ongoing challenges in the manufacturing and industrial sectors, the PPI has remained stagnant since October 2022, reflecting the overall trend of decreasing prices.
These continued falls of both CPI and PPM highlight the deflationary pressures on the Chinese economy. Several factors, including lower domestic demand and prolonged property decline, along with ongoing trade tensions, are responsible for these pressures.


Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth
Ethereum Ignites: Fusaka Upgrade Unleashes 9× Scalability as ETH Holds Strong Above $3,100 – Bull Run Reloaded
Morgan Stanley Boosts Nvidia and Broadcom Targets as AI Demand Surges
EUR/USD Smashes 1.1660 as ADP Jobs Massacre Crushes the Dollar
U.S. Productivity Growth Widens Lead Over Other Advanced Economies, Says Goldman Sachs
U.S. Black Friday Online Spending Surges to $8.6 Billion, Boosted by Mobile Shoppers 



