China inflation data is due this weekend. February data expected to show CPI deflation.

Inflation data is due from China on Sunday March 9 at 0130 GMT

• Saturday March 8 at 2130 US Eastern time

The CPI is expected to slip back into deflation both m/m and y/y.

Background:

China’s CPI showed a general downtrend from August to December 2024, reflecting weak consumer demand, before rebounding in January 2025 due to seasonal spending.

Meanwhile, PPI remained firmly in deflationary territory, suggesting that industrial sector challenges persist despite government stimulus efforts.

The data indicates that while consumer inflation has fluctuated, factory prices remain under pressure, signaling ongoing concerns about China’s economic recovery.

In more detail:

All the below monthly results are y/y Consumer Price Index (CPI):

• August 2024: +0.5% – The highest rise since early 2024, signaling some inflationary pressure.
• September 2024: +0.4% – Slight slowdown from August but still indicating moderate price growth.
• October 2024: +0.3% – Continued deceleration, reflecting subdued consumer demand.
• November 2024: +0.2% – The lowest increase since June, raising concerns about deflation risks.
• December 2024: +0.1% – Further slowdown, indicating weak domestic demand.
• January 2025: +0.5% – A notable rebound, largely due to increased consumer spending during Lunar New Year.

All the below monthly results are y/y Producer Price Index (PPI):

• August 2024: -2.3% – Continued factory-gate price deflation, reflecting weak industrial demand.
• September 2024: -2.5% – Further decline, signaling persistent deflationary pressure in the industrial sector.
• October 2024: -2.9% – The sharpest drop in months, marking the 25th consecutive month of factory price declines.
• November 2024: -2.5% – Slight improvement from October, but factory deflation remains significant.
• December 2024: -2.3% – Deflationary trend continues, extending to 27 straight months of decline.
• January 2025: -2.3% – No significant improvement, indicating ongoing challenges in the industrial sector.

This article was written by Eamonn Sheridan at www.forexlive.com.