Consumer prices fell in China in February for the first time in 13 months, as persistent weak demand was compounded by the early timing of the Lunar New Year holiday.
The National Bureau of Statistics said Sunday that the consumer price index dropped 0.7% in February compared to a year ago. On a monthly basis, prices were down 0.2% from January.
While many other countries wrestle with inflation, China's policymakers face flat to falling prices, and the possibility they could evolve into a deflationary spiral that would drag down the economy. The government stressed the need to increase domestic demand and consumer spending in an annual report last week to its ceremonial legislature, the National People's Congress, but held back on unveiling any dramatic new steps to boost the economy.
