China's Deflationary Pressures Deepen in February
China's consumer price index in February missed expectations and fell at the sharpest pace in 13 months, while producer price deflation persisted, as seasonal demand faded and households remained cautious about spending amid job and income worries. The government has vowed to boost consumption through various measures, but analysts expect deflationary pressures to continue. China's economy is still struggling with weak consumption capacity and willingness.
- The persistence of deflationary pressures highlights the need for more proactive fiscal policy, particularly in countries like China where exports face significant risks from global trade tensions.
- What role will technological advancements play in reviving consumer demand and helping China overcome its economic challenges, or will they be insufficient to offset the underlying structural issues?