China's consumer prices dropped by 0.1% year-on-year in May 2025, maintaining the same pace for the third month while coming in slightly less than market forecasts of a 0.2% drop. This was the fourth straight month of consumer deflation, highlighting challenges from ongoing trade disputes with the US, sluggish domestic demand, and concerns over job stability. On a monthly basis, the CPI declined by 0.2% in May, reversing a 0.1% gain in April and marking the third monthly drop so far this year.