China's inflation data show economy in doldrums despite a slight improvement in trade
China's economy remains in the doldrums, with prices falling due to slack demand from consumers and businesses
HONG KONG — China’s economy remains in the doldrums, data released Friday showed, with prices falling due to slack demand from consumers and businesses.
Consumer prices remained flat in September compared with a year earlier, the National Bureau of Statistics said, while wholesale prices fell 2.5%. Exports and imports also fell last month as demand fell in overseas markets.
The faltering recovery of the world’s second largest economy from the shocks of the COVID-19 pandemic is dragging on regional and global growth, though economists have said the worst might have passed. Trade ticked up slightly from the month before and manufacturing is showing signs of improvement.
Earlier this week, the International Monetary Fund cut growth forecasts for China, predicting economic growth of 5% this year and 4.2% in 2024, down slightly from its forecasts in July.
The IMF attributed its downward revision to weaker consumer confidence, subdued global demand and a crisis in the property sector that has made a big dent in business activity.
China is due to report economic growth data on Oct. 18 and economists are forecasting the economy grew at a 4.4% annual pace in July-September, down from 6.3% in the previous quarter.
Friday's data showed food prices dropped 3.2% in September, with the price of pork sliding 22% from a year earlier, a steeper decrease than the 17.9% drop in August.
Core inflation, which excludes food and energy prices, rose 0.8% from a year earlier, the statistics bureau said, similar to a 0.8% rise in August.
The recovery in domestic consumer demand has been much weaker than hoped for, and excess
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