China Consumer Prices Dip Below Zero Again as Demand Weakens

China's consumer prices slipped below zero for the first time in three months, as deflationary pressures persist in an economy at risk of a slowdown.

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BEIJING -

The consumer price index fell 0.4 per cent in August from a year earlier, said the National Bureau of Statistics on Sept 10. The median forecast of economists surveyed by Bloomberg was for a 0.2 per cent drop, after inflation dipped to zero in July.

Factory deflation eased for the first time in half a year. The producer price index decreased 2.9 per cent, remaining in negative territory for the 35th straight month but narrowing its decline from July's 3.6 per cent drop.