People visit the US luxury brand Coach store at a shopping mall in Beijing.
Adek Berry | Afp | Getty Images
China’s consumer prices fell more than expected in August while deflation in factory-gate prices persisted, as calls mounted for Beijing to ramp up measures to bolster sluggish domestic demand and cushion weakening exports growth.
The consumer price index dipped 0.4% last month from a year earlier, according to data from the National Bureau of Statistics released Wednesday, compared with Reuters-polled economists’ forecast for a 0.2% contraction.
The gauge on consumer inflation was flat compared to the previous month, despite many economists’ expectation for a modest recovery.
The producer price index dropped 2.9% in August from a year ago, in line with economists’ estimates in a Reuters poll.
Chinese policymakers have intensified efforts aimed at reining in excessive price cuts that have eroded corporate profits while doing little to spur demand.
A slew of local governments across the country have paused their consumer trade-in programs — that subsidize spending on cars, household appliances and smartphones — due to the rapid depletion of the allocated funds.
Economists have ramped up calls for Beijing to unleash fresh fiscal support as fresh data signal mounting economic strains.
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