Current Trends
- Consumer Prices: In April 2025, prices for non-food items remained unchanged, as increases in certain areas, such as housing costs and healthcare, were offset by a decrease in transportation costs. Food prices showed the smallest decline in three months, due to extreme weather conditions and supply chain disruptions.
- Producer Prices: In the second quarter of 2025, producer prices fell by 3.3%, indicating a continued deflation. This trend has been ongoing since October 2022.
- Core Inflation: Core inflation, which excludes volatile food and fuel prices, increased by 0.5% and remained stable.
Forecasts and Impacts
For June 2025, a forecast of +0.0% compared to the previous year is expected, which could mean stabilization of consumer prices. This development is important for the assessment of inflation and could have impacts on global markets, as China plays a central role in international trade.
Global Impacts
The economic situation in China affects not only the Chinese market but also the global economy. A stabilization or recovery of Chinese consumer prices could send positive signals for investors and trading partners, while ongoing deflation could create uncertainty.
Comparison with Other Markets
In comparison, the German inflation rate remained at 2.1% in May 2025, while the inflation rate in the Eurozone is 2.4%, indicating a more stable price development. These differences show that the economic situation in China presents unique challenges and opportunities.
In summary, the current development of consumer prices in China is characterized by deflation, which can be attributed to internal and external factors. The forecasts for June 2025 suggest a possible stabilization, which is significant for both the Chinese and global economy.