China's population has experienced a second consecutive year of contraction, with a more accelerated decline. According to the national statistical authority, at the close of last year, China's population stood at just under 1.41 billion, reflecting a reduction of over two million from the end of 2022. This decline is more than double the previous year's figure, marking a substantial demographic shift.

It becomes evident that this demographic decline is poised to trigger extreme deflationary tendencies. These trends, already in motion, are being countered by a robust combination of expansive policies from both the state and the central bank. The unfolding scenario raises questions about how the Chinese Communist Party (CCP) and the media will navigate and potentially obscure the inflationary impacts emerging from this demographic shift in the years ahead.