CBI chief warns against ‘large scale tax cuts driven by short-termism’; BoE’s Mann warns of ‘pernicious’ inflation – as it happened

Rolling coverage of the latest economic and financial news, as China slipped deeper into deflationary territory in January

China's deflation problem highlights the country's economic malaise, explains Susannah Streeter, head of money and markets at Hargreaves Lansdown:

While inflation is still an unruly force central banks are attempting to tame in many nations, China is grappling with its evil twin. Deflation.

Prices have fallen at their steepest rate since 2009, with the consumer price index falling 0.8% compared to a year earlier. Although falling food prices, particularly pork, is partly behind the trend. This was exacerbated by sharply lower demand during the month compared to last year due to the lunar new year celebrations landing in February, but underlying weakness remains with non-food inflation falling back.

The current market remains one of robust volumes, but while the Red Sea crisis has caused immediate capacity constraints and a temporary increase in rates, eventually the oversupply in shipping capacity will lead to price pressure and impact our results.

The ongoing disruptions and market volatility emphasize the need for supply chain resilience, further confirming that Maersk's path toward integrated logistics is the right choice for our customers to effectively manage these challenges.