Headline CPI inflation edged up to its highest level since China’s reopening from zero-COVID, but this was due to a weather-related pickup in food prices rather than success of the “anti-involution” campaign. Without stronger demand-side measures, we think overcapacity and the resulting deflationary pressures should persist in the coming years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services