China’s consumer demand remained weak in August 2025, with Consumer Price Index (CPI) falling 0.4% and core CPI rising 0.9%, while Producer Price Index (PPI) dropped 2.9% but showed signs of easing deflation. SMU Associate Professor of Finance Fu Fangjian said that China’s PPI decline narrowed year-on-year in August 2025 while remaining stable month-on-month, which he took as a sign that recent Chinese government measures to curb excessive competition were having some effect and that the economy had begun to stabilise.
