The gross domestic product deflator fell 1.5% in the fourth quarter. — Bloomberg
Beijing: A Chinese measure of economy-wide prices marked its longest slide since 1999, underscoring deep deflationary pressures that are weighing on the world’s second-largest economy.
The gross domestic product (GDP) deflator fell 1.5% in the fourth quarter, according to Bloomberg calculations based on official data released yesterday.
That marked the third straight quarter of declines, as weak consumer confidence and a slump in the property market continue to drag on prices.
The gauge is calculated using the difference between nominal and real GDP growth, and reflects a broader picture of the economy that’s not limited to consumer prices. China doesn’t publish an official GDP deflator figure.
China has struggled to revive domestic demand and consumer confidence after a post-pandemic recovery last year failed to find its footing.
Deflation continues to pose one of the main challenges to the economy, along with the property sector’s record slump and an uncertain regulatory environment.
Authorities have avoided acknowledging the economy is in deflation despite the extended contraction in the GDP deflator gauge and a three-month straight decline in the consumer price index.
Instead, they have called for a more positive depiction of the economy’s outlook and better guidance of public opinion. — Bloomberg
