China’s consumer prices saw a moderate increase in September, signaling potential growth in market demand as new economic stimulus policies take effect. The Consumer Price Index (CPI), a key measure of consumer inflation, rose by 0.4 percent year on year and remained flat month over month, according to data released by the National Bureau of Statistics (NBS) on Sunday. This follows a slight increase in August, suggesting a trend of stable price levels for household goods.
Price fluctuations were observed in various sectors. Fresh vegetables and pork prices experienced jumps due to weather disruptions, while the conclusion of the summer vacation period led to decreased travel activity, causing airfares and hotel prices to decline.
Meanwhile, the Producer Price Index (PPI), which measures inflation at the wholesale level, decreased by 2.8 percent in September compared to the previous year. Dong Lijuan, chief statistician at the NBS, attributed this decline to falling global commodity prices and slowing domestic demand. However, the month-to-month decline of the PPI in September narrowed by 0.1 percentage point compared to August, indicating potential stabilization.
Dong noted that the real estate sector remains in an adjustment period, and severe weather in some regions has led to weak demand for building materials. Despite these challenges, expectations of policy stimulus have driven a recovery in steel demand in the latter half of September.
In response to the economic landscape, China’s central bank unveiled a series of significant monetary policy adjustments in late September as part of broader efforts to bolster the economy. The top economic planner is set to front-load 200 billion yuan ($28 billion) from the government’s 2025 budget, and the Ministry of Finance has announced plans to introduce more fiscal stimulus measures.
“Combined with existing policies and new, more aggressive measures, we expect consumer and producer confidence to improve significantly,” said Bruce Pang, chief economist of JLL Greater China. “This should lead to a gradual increase in market demand and further stabilization and growth in overall social demand,” he added.
Reference(s):
cgtn.com
