Falling consumer prices in China underscore Beijing’s growing economic challenges

Chinese consumer prices fell last month for the first time in over a year, indicating that households remain cautious about spending amid the country’s economic malaise.

Optimism over China’s tech sector has brightened investor sentiment, but the new data underscored the deepening deflationary pressures on the country as Beijing navigates the escalating trade war with the US and tries to juice domestic consumption.

At the country’s annual parliament session last week, leaders vowed to increase spending to address the “heavy and arduous” task of creating jobs and set the lowest inflation target in more than two decades — signaling Beijing is aware of the challenges it faces.