Consumer prices in China are rising again for the first time as Switzerland achieves record results in 2023

Consumer prices in China have risen for the first time in six months. As the statistics authority announced in Beijing on Saturday, the consumer price index rose by 0.7 percent in February compared to the previous year.

The increase was therefore greater than experts had expected.

The Chinese economy previously suffered from unusually strong deflationary pressures. In January, consumer prices fell by 0.8 percent, the most since about fifteen years ago, during the global economic and financial crisis.

Most economists consider deflation to be more dangerous to the development of an economy than slightly rising prices. At first glance, consumers benefit because they have to pay less for goods and services. However, deflation usually also puts pressure on companies’ profits and therefore carries the risk of wage cuts and layoffs.

The real estate sector is sputtering

The Chinese economy has been trying to recover from the corona pandemic for months. Premier Li Qiang announced on Tuesday at the National People’s Congress in Beijing a planned economic growth of about five percent this year. Most observers viewed the target brand as ambitious due to the country’s rampant economic problems.

The real estate sector of the world’s second largest economy, which, by the way, significantly fuels the economic engine, is in crisis. In the domestic market, people are more likely to keep their money together and consume less. (cst/sda/dpa)