China Consumer Prices Hold Steady as Govt Curbs Excessive Competition

Beijing Still Faces Challenge in Reflating Economy, With Fragile Consumer Demand

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BEIJING — China's consumer prices held steady in July as deflationary pressures eased on the back of a government pledge to contain excessive competition.

The consumer price index was unchanged from a year earlier, said the National Bureau of Statistics on Aug. 9. The median estimate of economists surveyed by Bloomberg was for a 0.1 percent decline. Inflation ended a four-month falling streak in June, turning positive.

Factory deflation persisted into a 34th month, with the producer price index falling 3.6 percent, matching June's decline.

Price wars are intensifying deflationary pressures in China, where consumer demand remains fragile. The government has launched a campaign to curb the cut-throat competition among businesses that has eroded profits and driven down wages.