Pedestrians pass a Huawei Technologies Co. flagship store in Shenzhen, China, on Wednesday, Oct. 8, 2025.
Qilai Shen | Bloomberg | Getty Images
China’s consumer prices fell more than expected in September, while the deflation in producer prices persisted, underscoring the impact of sluggish domestic demand and trade worries on consumer and business sentiment.
The consumer price index fell 0.3% in September from a year earlier, National Bureau of Statistics data showed on Wednesday, a sharper decline than economists’ forecast of a 0.2% slide. Prices ticked up 0.1% month-on-month.
Core CPI, which strips out volatile food and energy prices, rose 1.0% from a year earlier, the highest since February 2024, according to data from Wind Information.
China’s producer price index dropped 2.3% from a year ago, in line with economists’ forecast, official data showed.
The producer price downturn has persisted for almost three years, hurting profitability of manufacturers who have had to weather tepid consumer confidence and production disruption stemming from U.S. trade policies.
Weak consumer demand has weighed on the world’s second-largest economy that’s struggling from a prolonged housing downturn and tepid household spending while U.S. tariffs squeeze exports.
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