Chinazhongguo中国economyjingji经济inflationtonghang通胀reboundfantán反弹endsjieshu结束deflationtongsuō通缩cyclezhouqi周期。
July 26, 2026 at 7:14 PM
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BusinessChina Inflation Reverses After Three Years of Deflation
China ended its record deflationary run in the second quarter of 2026 as the GDP deflator rose 1.6 percent after three years of contraction, though growth remains uneven.
China showed positive economic signals in the second quarter of 2026 as the GDP deflator rose 1.6 percent, ending a record three-year deflationary period. However, this rebound was primarily driven by rising global energy prices rather than domestic demand. Domestic consumption growth remained slow and weak, with household wealth continuing to be affected by the sluggish real estate sector. The manufacturing sector benefited from the global AI investment boom, with high-tech manufacturing growing 13.1 percent year-on-year. Yet the overall economic growth rate fell to its slowest pace since 2022, reflecting the ongoing challenges in domestic demand recovery and the uneven nature of China growth.
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