When he bought an apartment near a good high school in northeast Beijing in 2020, Zhou Fujin expected that renting it out would cover most of his mortgage. But the apartment's value and the rent he is getting have plummeted in the past couple years, straining his family’s finances.
China is experiencing a spell of deflation, or falling prices, that contrasts with inflationary pressures prevailing elsewhere in the world. Cheaper prices can be a blessing for some, but deflation is a symptom of relatively weak demand and stalling economic growth.
