China consumer prices stagnate, raising fears of deflation

Weak demand leaves CPI flat while inflation expectations hit record low

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Big Chinese e-commerce companies cut prices aggressively to spur demand during last month's 618 online shopping festival. © Reuters

IORI KAWATE, Nikkei staff writer

BEIJING -- Chinese consumer prices ended more than two years of growth in June, according to government data released Monday, fueling concerns about deflation amid a sluggish job market and slow recovery in consumer spending.

The overall consumer price index (CPI) was flat on the year. Core inflation excluding food and energy -- a measure of household purchasing power -- edged up 0.4%, its slowest rise since March 2021, amid weak demand.

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