China’s Consumer Price Index (CPI) for August 2025 is due today. Its expected to show persistent deflation at -0.2% y/y from 0% y/y in July. Chinese domestic demand is running at weak levels despite ongoing incremental economic support and l stimulus efforts.

Also coming is the Producer Price Index (CPI), also persisting in deflation. In July Chinese policy shifted to “Anti-involution”, trying to address intense, unproductive competition that leads to inefficiency rather than progress.
The term refers to destructive, excessive competition with little progress, gained prominence after President Xi Jinping vowed to regulate chaotic price wars, especially in sectors like solar, EVs, and steel. Its an uphill battle though, overcapacity spans competitive private-sector industries.

The data is due at 0130 GMT, 2130 US Eastern time.