Consumer prices in China rose slightly in September. According to experts, market demand will increase following the introduction of strong new policies aimed at stimulating the economy.
The Consumer Price Index (CPI), a key indicator of consumer inflation, increased by 0.4 % year-on-year in September and remained flat month-on-month, data from the National Bureau of Statistics (NBS) showed on Sunday. This result follows a slight increase in August and indicates a trend of moderate price level of household goods.
Prices of fresh vegetables and pork jumped due to weather disruptions, while the end of the summer holidays led to a drop in travel, causing airfares and hotel prices to fall.
The Producer Price Index (PPI), which tracks inflation at the wholesale level, recorded a decline of 2.8 % in September from a year earlier. According to Dong Lijuana, the NBS's chief statistician, this decline is probably due to a fall in global commodity prices and a slowdown in domestic demand.
The month-on-month decline in the producer price index in September was 0.1 percentage point less than in the previous month.
Dong said the real estate sector is still in a period of adjustment along with adverse weather in some regions, leading to overall weak demand for building materials.
However, he added that steel demand showed signs of recovery in the second half of September, thanks to expectations of policy stimulus.
China's central bank unveiled a series of major monetary policy adjustments in late September as part of a broader effort to support the economy. China's top economic planner is set to frontload 200 billion yuan ($28 billion) from the government's 2025 budget. The finance ministry has also said it will double down on other fiscal stimulus measures.
"Combined with existing policies and new, more aggressive measures, we expect consumer and producer confidence to improve significantly," He told Bruce Pang, chief economist at JLL Greater China, in a note to CGTN.
This should lead to a gradual increase in market demand and further stabilisation and growth in overall social demand, he added.
CMG/ gnews - RoZ
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