China's economic landscape is showing signs of shifting dynamics as the latest data reveals a continued decline in consumer prices and a slower drop in factory-gate prices for January.
The National Bureau of Statistics (NBS) reported that the country's consumer price index (CPI), a key indicator of inflation, decreased by 0.8 percent year on year in January. This marks the fourth consecutive month of declining consumer prices.
However, on a month-on-month basis, the CPI saw a modest increase of 0.3 percent during the same period. The NBS attributed the year-on-year decline to a high base from the previous year, while the slight monthly growth was driven by heightened consumer demand in the lead-up to the Spring Festival holidays.
Meanwhile, China's producer price index (PPI), which measures factory-gate prices, fell by 2.5 percent compared to the same month last year in January. This follows a 2.7 percent drop in December, indicating a slowdown in the pace of decline. On a month-on-month basis, the PPI dipped by 0.2 percent in January after a 0.3 percent decline in December, influenced by fluctuations in international commodity prices.
Bruce Pang, chief economist at JLL Greater China, anticipates a mid-term shift towards more normalized inflation rates. \"From a full-year perspective, China's CPI will rebound moderately, while the PPI is expected to turn from negative to positive,\" Pang told CGTN.
This outlook suggests a potential stabilization in China's inflation trends and a positive trajectory for the country's economic performance in the long run.
Reference(s):
cgtn.com
