In a worrisome economic trend for the world's second-largest economy, China's Consumer Price Index (CPI) has continued its downward trajectory. For November 2024, the CPI registered a decline of -0.6%, down from October's already negative figure of -0.3%, as updated by China's economic authorities on December 9, 2024.
This downward trend emphasizes a continuing deflationary pressure, which could impact the nation's consumption and economic growth during the upcoming months. The month-over-month comparison highlights increasing challenges that the Chinese economy faces in restoring price stability, as efforts to stimulate demand and boost consumer spending face obstacles.
Analysts and policymakers may now have to tackle more complex issues such as deflationary spirals, with potential implications for both domestic and international markets that are closely linked to China's economic health. The extended negative CPI figures underscore the urgency for the Chinese authorities to reconsider their monetary and fiscal strategies in combating the trend.
