Consumer prices fell in China in February for the first time in 13 months, as persistent weak demand was compounded by the early timing of the Lunar New Year holiday. The National Bureau of Statistics said Sunday that the consumer price index dropped 0.7% in February compared to a year ago. China’s policymakers are facing flat to falling prices, and the possibility they could evolve into a deflationary spiral that would drag down the economy. The Lunar New Year came in January instead of February this year. That drove up spending and prices in January compared to last year, and made them relatively lower in February.
