China's consumer prices rose moderately in September, signaling a steady recovery as new economic stimulus measures take effect. Experts anticipate a surge in market demand following the introduction of powerful policies aimed at invigorating the economy.
The Consumer Price Index (CPI), a key gauge of consumer inflation, increased by 0.4 percent year on year and remained flat month over month in September, data from the National Bureau of Statistics (NBS) revealed on Sunday. This follows a slight uptick in August, indicating a trend of stable price levels for household goods.
According to the NBS, fresh vegetable and pork prices saw notable increases due to weather disruptions affecting supply chains. Conversely, the conclusion of the summer vacation period led to decreased travel demand, causing airfares and hotel prices to decline.
The Producer Price Index (PPI), which measures inflation at the wholesale level, decreased by 2.8 percent year on year in September. This decline is attributed to falling global commodity prices and a slowdown in domestic demand, noted Dong Lijuan, chief statistician at the NBS.
However, the month-to-month decrease in the PPI narrowed by 0.1 percentage points compared to August, suggesting a gradual stabilization. Dong pointed out that while the real estate sector remains in a period of adjustment, and severe weather in some regions has led to weaker demand for building materials, steel demand showed signs of recovery in the latter half of September, driven by expectations of policy stimulus.
In late September, China's central bank unveiled a series of significant monetary policy adjustments as part of broader efforts to bolster the economy. The nation's top economic planner is set to front-load 200 billion yuan ($28 billion) from the government's 2025 budget, while the Ministry of Finance has pledged to intensify 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, in a note to CGTN. \\"This should lead to a gradual increase in market demand and further stabilization and growth in overall social demand.\\"
Reference(s):
cgtn.com
