As food deflation accelerates in China, Hong Kong’s shoppers adapt behavior

Since Q4 2023, China has been facing deflation. According to the Bureau of National Statistics, the country saw in 2023 the biggest price drop in over 10 years : this was particularly true for food products, where prices fell by 0.3% year-on-year. In January 2024, the drop was -5.9% on food, including down by 13% on fruit and vegetables and down by 12% on meat. In Hong Kong, ruled by a pro-Beijing government, consumers prefer to head to Shenzhen for wholesale purchases at Costco and Sam’s...