China is in a deflationary spiral: China’s consumer prices fell -0.7% year-over-year in February. China's Core CPI inflation decreased by -0.1%, the second monthly decline in over 15 years. This follows a GDP deflator drop of -0.8% in Q4 2024, the 7th consecutive quarter of falling prices, in-line with the 1990s streak. China's GDP deflator is now on track for its longest period of declines since the 1960s. This comes as spending remains weak as the property crisis undermined consumer confidence which also forced firms to mark down prices to attract buyers. China cannot get rid of deflation.