China’s consumer prices edged higher in August due to extreme weather conditions, while producer prices fell more sharply amid weak market demand and declining international commodity prices, according to official data released on Monday.
The National Bureau of Statistics (NBS) reported that the Consumer Price Index (CPI), a key gauge of retail inflation, rose 0.6 percent year-on-year in August, slightly up from July’s increase.
NBS statistician Dong Lijuan explained that severe floods and scorching heat over the summer significantly impacted farm produce prices, contributing to the higher inflation rate.
Vegetable and fruit prices saw notable increases as adverse weather conditions disrupted agricultural production and supply chains across several regions.
Conversely, the Producer Price Index (PPI), which measures the average change in selling prices received by domestic producers, fell by 1.8 percent compared to the same month last year, a steeper decline than July’s 0.8 percent drop.
On a month-to-month basis, the PPI in August decreased by 0.7 percent, widening from a 0.2 percent decrease in July.
Dong attributed the decline in PPI mainly to insufficient market demand and a downward trend in some international commodity prices.
The continued decline in producer prices reflects persistent challenges in the industrial sector, with businesses facing pressures from both domestic and international markets.
Analysts suggest that the contrasting movements in consumer and producer prices highlight the complexities in China’s economic recovery amid global uncertainties and internal structural adjustments.
Reference(s):
China's CPI rises amid weather extremes, factory costs decline
cgtn.com
