China's Stagnant Inflation and Youth Unemployment Woes Amplify Economic Concerns

Abstract

China's economic landscape faces two pressing challenges as consumer inflation stagnates and youth unemployment reaches alarming levels. These issues intensify worries about deflation risks and prompt discussions regarding potential economic stimulus measures. While China's consumer price index (CPI) showed no change in June compared to the previous year, factory-gate prices continued to decline. These contrasting trends stand in stark contrast to the United States and Europe, where persistently high inflation suggests imminent interest rate hikes.