China's inflation dipped slightly in September 2025, with deflation persisting for 36 months amid weak demand and a struggling property market.

China’s consumer prices fell 0.3% year-on-year in September 2025, slightly less than August’s 0.4% drop, while factory-gate prices declined 2.3% annually—the 36th straight month of deflation—narrowing from August’s 2.9% drop. Core inflation, excluding food and energy, rose to 1%, its highest in 19 months, signaling modest signs of stabilization. The data reflect ongoing deflationary pressures from weak demand, a struggling property market, and industrial overcapacity, though government efforts to curb price wars and stimulate growth may be having limited impact.