China’s prices fall at fastest rate in 15 years as economy fights deflation

Consumer prices across China are falling at the fastest pace in 15 years, as its economy struggles with weak demand.

China’s consumer price index fell 0.8% year-on-year in January, data released this morning showed. It’s the fourth straight month of declines, and the biggest contraction since 2009 after the financial crisis.

The inflation rate was dragged down by falling food prices, which dropped by 5.9% year-on-year in January.

Pork prices dropped by 17%, and were a major drag on inflation, while fresh vegetables were 12.7% cheaper than a year ago and fruit cost 9.1% less.