China’s factory deflation has ended after more than three years, amplified by energy costs surging higher after the war in Iran disrupted swaths of global oil supply. China has been trapped in a deflationary spiral since late 2022, as a manufacturing glut and sluggish domestic demand led to intense price wars which eroded company profits and slowed wage growth. Their embattled property sector is still in the doldrums and analysts have largely dismissed any sort of recovery for the foreseeable future, but we think the dial is turning, not for a boom but a supportive improvement.
- Rising Chinese inflation since mid-2025 is an encouraging sign for the ASX resources sector.
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China Inflation – Source National Bureau of Statistics
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China Inflation – Source National Bureau of Statistics
