China’s consumer prices fell again in May, dropping by 0.1% and raising concerns about deflation. This marks the fourth consecutive decline since the start of the year, according to data released by the National Bureau of Statistics (NBS). Analysts attributed this trend to a lack of effective stimulus measures to boost domestic consumption despite strong exports and stable overseas markets. The median estimate from analysts predicted a 0.2% drop. Factors like price wars in the automotive industry and falling property prices further contributed to the downward pressure on prices, according to Zhiwei Zhang, president at Pinpoint Asset Management. He highlighted the need for greater domestic consumption as the country’s primary solution against deflation. While wholesale prices dropped significantly, indicating continued deflation, core inflation rates remained stable at a 0.6% increase from last year. The government is urging a halt in price wars within the automotive industry to protect businesses and consumers alike. The Chinese government has also called for targeted stimulus measures to support consumer spending. China’s trade data will be released later today, and experts predict a significant rise in exports.