Weak domestic demand is dampening price growth in the world’s second‑largest economy, while rising energy costs are increasing production expenses. The contrasting forces suggest a mixed outlook for manufacturers and consumers alike. Analysts note that the slowdown in internal demand could curb inflation, even as higher fuel prices add pressure on businesses. This dynamic sets the stage for policymakers to balance growth and price stability.
Weak domestic demand weighs on prices in world’s second-largest economy even as higher energy prices drive up costs for producers
