News analysis

Deflation risk looms in China following lacklustre Q2 growth

China’s retail sales in June grew 3.1 per cent, slowing sharply from a 12.7 per cent spike in May, official data out on Monday showed. PHOTO: NYTIMES
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BEIJING – Disappointing growth in retail sales in June and a sustained rout in the property market have further stoked fears of deflation in China, as recovery since its Covid-19 reopening continues to lose steam.

China’s retail sales in June grew 3.1 per cent, slowing sharply from a 12.7 per cent spike in May, official data out on Monday showed.

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