Economists predict increased deflationary pressures in China, despite improved projections for economic growth and exports this year, following a temporary trade truce with the United States (US).

A Bloomberg survey of 67 economists conducted last week forecasts consumer prices to rise by just 0.3% in 2025. This is down from a previous estimate of 0.4% made in April.

This is the lowest inflation estimate since polling began in 2023. Consumer inflation has remained below zero for the past three months, reflecting a broader trend of falling prices over the last two years.