China’s Consumer Prices Show Stable Growth in October Amid Economic Recovery
China’s consumer prices saw a mild rise in October, reflecting continued improvement in domestic demand as the country’s economic recovery gains momentum.
According to the National Bureau of Statistics (NBS), the Consumer Price Index (CPI), a key measure of inflation, increased by 0.3 percent year on year in October. This slight uptick follows a 0.4 percent rise in September, indicating a stable trend in consumer prices.
NBS statistician Dong Lijuan attributed the modest growth to falling energy prices, which helped to ease overall price levels, while food prices maintained steady growth. “Energy prices continued to decline, providing relief to consumers, even as food prices remained stable,” Dong noted.
The core CPI, which excludes volatile food and energy prices, rose by 0.2 percent year on year in October, up from 0.1 percent in September. This suggests that underlying inflationary pressures remain modest.
On a monthly basis, the CPI slipped by 0.3 percent in October after remaining unchanged in September. The decline was largely due to seasonal factors and the continued decrease in energy prices.
In the industrial sector, the Producer Price Index (PPI), which measures the cost of goods at the factory gate, decreased by 2.9 percent year on year in October. This was a slight widening from the 2.8 percent decline recorded in September. However, on a monthly basis, the PPI dropped by only 0.1 percent, a significant improvement from the 0.6 percent decline in September and the 0.7 percent drop in August.
The narrowing decline in the PPI month-on-month indicates that industrial production costs are stabilizing. Lower factory gate prices can benefit consumers and businesses downstream, but prolonged declines may signal deflationary pressures in the industrial sector.
Analysts believe that the stable consumer price growth, combined with the easing decline in producer prices, reflects a balanced economic recovery in China. As domestic demand continues to improve, inflation is expected to remain moderate, providing policymakers with room to maneuver in supporting growth.
Global Implications
China’s price stability is significant for global markets, as the country plays a vital role in international supply chains and commodity markets. Stable prices can help mitigate inflationary pressures worldwide, benefiting business professionals and investors who monitor economic trends in Asia.
Looking Ahead
With the sustained economic recovery, consumption is expected to further strengthen in the coming months. The balance between consumer price stability and industrial cost reductions will be crucial for maintaining economic momentum.
Reference(s):
cgtn.com
