China’s consumer prices fell for the fourth straight month in May, dropping 0.1% year-on-year, as stimulus efforts have yet to boost domestic demand.

A price war in the auto sector and falling property prices added downward pressure.

Producer prices also declined sharply, with factory-gate deflation deepening to 3.3%.

Despite strong exports, economists warn China must rely more on domestic consumption to fight deflation.

Recent policy measures include interest rate cuts and reserve requirement reductions, while U.S.-China trade tensions remain unresolved despite a partial tariff rollback, CNBC has reported.

Markets await potential further monetary easing and key financial policy announcements at an upcoming forum in Shanghai.

Written by B.C. Begley