China's consumer prices experienced a modest increase in September, signaling potential growth in market demand following the introduction of strong policy measures aimed at stimulating the economy.
Data from the National Bureau of Statistics (NBS) showed that the Consumer Price Index (CPI), a key measure of consumer inflation, rose 0.4 percent year on year and remained flat month over month in September. This follows a slight increase in August, suggesting a trend of moderate price levels for household goods.
Fresh vegetable and pork prices saw a noticeable jump due to weather disruptions, while the end of the summer vacation led to decreased travel demand, causing airfares and hotel prices to drop.
The Producer Price Index (PPI), which tracks inflation at the wholesale level, decreased by 2.8 percent in September compared to the previous year. This decline is attributed to falling global commodity prices and slowing domestic demand, according to Dong Lijuan, chief statistician at the NBS.
\"The real estate sector is still in an adjustment period, coupled with severe weather in some regions, leading to overall weak demand for building materials,\" Dong explained. \"However, driven by expectations of policy stimulus, steel demand showed signs of recovery in the second half of September.\"
In late September, China's central bank unveiled a series of significant monetary policy adjustments as part of a broader effort to bolster the economy. The nation's top economic planner is set to front-load 200 billion yuan ($28 billion) from the government's budget for 2025, while the Ministry of Finance announced plans 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. \"This should lead to a gradual increase in market demand and further stabilization and growth in overall social demand.\"
Analysts believe that the combination of monetary and fiscal policies will help strengthen consumer spending and industrial production, fostering sustainable economic growth. As these policies take effect, market demand is expected to rise, contributing to the stabilization of prices and boosting confidence among businesses and consumers alike.
Reference(s):
cgtn.com
