China's Consumer Price Index (CPI) saw a modest increase of 0.4% year-on-year in September, signaling stable inflation levels for consumers. According to data released by the National Bureau of Statistics (NBS) on Sunday, the CPI remained flat month-over-month, maintaining the trend observed in August.
While household goods experienced moderate price levels, fresh vegetables and pork saw notable price jumps due to weather disruptions. Conversely, the conclusion of the summer vacation period led to a decline in travel-related expenses, causing airfares and hotel prices to decrease.
On the wholesale front, the Producer Price Index (PPI) fell by 2.8% year-on-year in September. Dong Lijuan, chief statistician at the NBS, attributes this decline to falling global commodity prices and slowing domestic demand. However, the month-to-month decline narrowed slightly by 0.1 percentage points compared to the previous month.
Dong highlighted that the real estate sector continues to adjust, compounded by severe weather in certain regions, which has led to weakened demand for building materials. Despite these challenges, steel demand began to recover in the latter half of September, driven by expectations of upcoming policy stimulus measures.
In response to the economic landscape, China's central bank introduced a series of significant monetary policy adjustments in late September. These measures are part of a broader strategy to strengthen the economy. Additionally, China's top economic planner is set to allocate 200 billion yuan ($28 billion) from the government's 2025 budget. The Ministry of Finance announced plans to implement further fiscal stimulus measures.
Bruce Pang, chief economist of JLL Greater China, expressed optimism in a note to CGTN, stating, \"Combined with existing policies and new, more aggressive measures, we expect consumer and producer confidence to improve significantly.\" He added that these initiatives are expected to gradually increase market demand, leading to stabilization and growth in overall social demand.
Reference(s):
cgtn.com
