China is stuck in its longest deflationary streak in decades:

China’s GDP deflator fell -0.7% in Q4 2025, marking the 11th consecutive quarterly decline, the longest streak in at least 30 years.

China has been in deflation for 3 consecutive years now, the longest stretch since the country transitioned to a market economy in the late 1970s.

By comparison, the streak lasted just 2 quarters following the 2008 Financial Crisis.

Most recently, producer prices fell -1.4% YoY in January, marking the 40th consecutive month of factory deflation.

This comes as weak consumer demand, driven by a property market crisis, continues to drag prices lower.

Furthermore, Chinese factories are producing far more than consumers can buy, forcing companies to slash prices just to survive.

China's deflationary spiral is showing no signs of improvement.