China’s Consumer Deflation Extends as Tariffs Take Toll (1)

China’s consumer deflation extended for a third month in April as punitive tariffs imposed by the US add to a drag on prices from weak domestic demand.

The consumer price index fell 0.1% from a year earlier, the National Bureau of Statistics said Saturday, similar to the drop in the previous month. It also matched the median forecast of economists surveyed by Bloomberg.

Factory deflation persisted for a 31st month, with the producer price index recording a decline of 2.7% compared to 2.5% in March.

Deflationary pressures are likely to linger and possibly get worse after President Donald Trump took ...