{"id":95126,"date":"2025-03-10T00:00:00","date_gmt":"2025-03-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/03\/10\/all-eyes-are-on-us-inflation-data-this-week-while-china-faces-deflationary-pressures\/"},"modified":"2025-03-10T00:00:00","modified_gmt":"2025-03-10T00:00:00","slug":"all-eyes-are-on-us-inflation-data-this-week-while-china-faces-deflationary-pressures","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/03\/10\/all-eyes-are-on-us-inflation-data-this-week-while-china-faces-deflationary-pressures\/","title":{"rendered":"All eyes are on US inflation data this week, while China faces deflationary pressures"},"content":{"rendered":"

The US and China are on opposite inflation tracks <\/strong>\u2014 with the US battling stubborn price growth, and China sliding toward deflation. In the US, consumer prices likely rose 3.2% y-o-y in February, reflecting slow but persistent disinflation and keeping the Federal Reserve in a cautious stance, Bloomberg<\/a> reports. The Bureau of Labor Statistics\u2019 figures will be out this Wednesday. <\/p>\n

In the US<\/strong>, core CPI is projected to have climbed 0.3% last month, easing slightly from January\u2019s 0.4% gain<\/a> but still well above the Fed\u2019s 2% target. Producer price data on Thursday and consumer sentiment data on Friday will offer further insight into inflationary pressures. However, with investors awaiting March inflation data for clearer signals on Fed policy, Treasury yields remain elevated amid ongoing uncertainty over rate cuts.<\/p>\n

REMEMBER- <\/strong>The country\u2019s inflation risks could worsen. Trump-era trade measures \u2014 including 25% duties on steel and aluminum<\/a> and looming reciprocal tariffs \u2014 threaten to push prices higher, further complicating<\/a> Fed rate-cut bets.<\/p>\n

In contrast, China\u2019s inflation slump is deepening<\/strong>, with the country\u2019s consumer price index (CPI) falling<\/a> 0.7% last month \u2014 its first negative reading in 13 months. Its core CPI posted its first decline since 2021 and factory prices fell for a 29th straight month. Goldman Sachs estimates that an early Lunar New Year shaved 0.7 percentage points off February\u2019s CPI reading, but sluggish consumer spending remains the bigger concern. The latest reading raises deflation fears as domestic demand weakens, Bloomberg<\/a> reports separately. <\/p>\n

Beijing has set a 2% inflation target for 2025<\/strong>, its lowest in two decades, and is ramping up stimulus efforts to counter prolonged price declines. Economist David Qu warns of an \u201curgent need for policymakers to deliver on pledged stimulus quickly,\u201d adding that without strong fiscal and monetary support, \u201cdeflationary pressures will continue to weigh on the economy.\u201d<\/p>\n

How the rest of the world is faring:<\/strong><\/p>\n