<img src='https://news.cgtn.com/news/2024-10-13/China-s-CPI-up-0-4-pct-in-September-1xETpLyjeCI/img/0d934b50d86b452f82b2829f32a0d672/0d934b50d86b452f82b2829f32a0d672.jpeg' alt='Shoppers at a supermarket in east China's Shandong Province, October 13, 2024. /CFP'
China’s consumer prices rose moderately in September. Experts say that market demand is set to rise following the introduction of powerful new policies aimed at stimulating the economy.
The Consumer Price Index (CPI), a key measure of inflation for consumers, rose 0.4 percent year on year and remained flat month over month in September, data from the National Bureau of Statistics (NBS) showed on Sunday. This follows a slight increase in August, suggesting a trend of moderate price levels for household goods.
Fresh vegetables and pork prices jumped due to weather disruptions, while the end of summer vacation led to a decrease in travel, causing airfares and hotel prices to drop.
The Producer Price Index (PPI), which tracks inflation at the wholesale level, saw a decrease of 2.8 percent in September compared to the previous year. This decline is likely due to falling global commodity prices and slowing domestic demand, according to Dong Lijuan, chief statistician at the NBS.
The month-to-month decline of the PPI in September narrowed by 0.1 percentage point compared with that of the previous month.
Dong said that 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.
However, driven by expectations of policy stimulus, steel demand showed signs of recovery in the second half of September, she added.
China’s central bank unveiled a series of major monetary policy adjustments in late September, as part of a broader effort to bolster the economy. China’s top economic planner is set to front-load 200 billion yuan ($28 billion) from the government’s budget for 2025. The Ministry of Finance also said that it will double down on more 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, he added.
