China's CPI rose just 0.2% in 2024, signaling persistent deflation fears amid weak demand.

China's consumer prices barely increased in 2024, with the consumer price index (CPI) rising only 0.2%, far below the 3% target. Factory prices fell for the 27th consecutive month, indicating persistent weak domestic demand due to job insecurity, housing market downturns, high debt levels, and tariff threats from the US. Despite Beijing's stimulus efforts, deflation fears persist, with economists warning that these conditions could dampen economic growth further.