"China's Economy Faces 16th Consecutive Month of Producer Price Decline and Consumer Price Slip"

China's producer prices fell for the 16th consecutive month in January, while consumer prices slipped for the fourth month, highlighting the challenge Beijing faces in reflating its economy. The producer price index declined 2.5% from a year earlier, slightly better than expected, while the consumer price index fell 0.8%, exceeding the median estimate. This emphasizes fears of deflation and reflects the "tortuous" economic recovery after the country's zero-Covid curbs. China's economic challenges are exacerbated by a property market slump and limited bargaining power for companies.