China’s deflation near-miss isn’t the economic story of 2025

China did not slip into outright deflation last year and that in itself matters. When weak global demand, geopolitical frictions and a prolonged property correction weighed heavily on sentiment, consumer prices stayed marginally positive. The latest data suggests an economy not in free fall but navigating a transition towards more balanced and sustainable growth, albeit at a subdued pace. December’s inflation figures underline this point. Consumer prices rose by 0.8 per cent year on year, the...