China's economy shows guarded resilience as its Consumer Price Index (CPI) climbed 0.5% year-on-year in January, signaling a modest rebound in domestic demand. The National Bureau of Statistics released the data Sunday, with analysts highlighting stabilizing food prices and holiday spending ahead of Lunar New Year celebrations as key drivers.
Meanwhile, the Producer Price Index (PPI) fell 2.3% – its 16th consecutive monthly decline – reflecting ongoing pressures in global commodity markets and industrial restructuring. \"This split between consumer and factory gate prices underscores China's transitional economy,\" said independent market strategist Li Wei. \"While households are cautiously spending, manufacturers continue facing post-pandemic recalibration.\"
Notably, pork prices surged 7.4% month-on-month due to seasonal demand, though vegetable costs dropped 3.8% thanks to improved winter harvests. Observers suggest the CPI uptick aligns with government stimulus measures targeting domestic consumption, including recent tax breaks for small businesses and rural revitalization programs.
As global markets watch for China's economic trajectory, experts predict targeted monetary easing could emerge if PPI weaknesses persist through Q1 2025. The data arrives as multinational firms reassess supply chains ahead of anticipated U.S. Federal Reserve rate cuts later this year.
Reference(s):
cgtn.com
