China’s consumer prices fell more than expected in August, while wholesale deflation continued, underscoring weak domestic demand. The consumer price index declined 0.4% YoY, steeper than economists’ forecast of a 0.2% drop. Core CPI rose 0.9%, the highest since February 2024, driven by gains in household appliances and clothing. Food prices slumped 4.3%, with pork, vegetables and fruit leading declines. The producer price index dropped 2.9%, marking its third year in deflation. Economists cautioned that price pressures in consumer durables, down 3.7%, are now more severe than during the 2008 financial crisis. Exports growth slowed to 4.4% in August, adding to calls for stronger fiscal action.