CPI and PPI data from China for August 2025
China moving further into deflation. Despite ongoing stimulus efforts, admittedly incremental.
CPI YY -0.4%, largest year-on-year drop in six months
- expected -0.2%, prior 0.0%
- for m/m 0% (expected +0.1%, prior +0.4%)
PPI YY -2.9%, smallest year-on-year decline in four months
- expected -2.9%, prior -3.6%
- for m/m 0%
As for PPI, the anti involution policy not showing much of an impact so far. As I posted earlier:
- In July Chinese policy shifted to “Anti-involution”, trying to address intense, unproductive competition that leads to inefficiency rather than progress. The term refers to destructive, excessive competition with little progress, gained prominence after President Xi Jinping vowed to regulate chaotic price wars, especially in sectors like solar, EVs, and steel. Its an uphill battle though, overcapacity spans competitive private-sector industries.
