China’s consumer prices rise for third month, factory deflation persists

China's consumer prices rise for third month, factory deflation persists

China: China’s consumer prices rose in April for a second straight fortnight, while supplier costs extended declines, suggesting adaptable local demand, despite a weak financial recovery.

The closely watched figures are in line with standard surveys that show stock and service action cooling as worries about the slowdown in economic growth are weighed down by a long cover slump, raising the need for more policy support.

According to data released by the National Bureau of Statistics ( NBS ), the consumer price index ( CPI ) increased 0.3 % in April from a year earlier, accelerating from a 0.1 % increase in March. That was above the Reuters poll’s forecasted 0.2 % increase.

CPI increased 0.1 % from the previous month, reversing a 1 % decline predicted by economists in March.

Producer price index ( PI ) decreased by 2.5 percent in April from the previous month, which was down 2.8 % from the previous month, and was more in line with the forecast decline of 2.3 %.

Jobless fears persist, particularly among young people, with average daily home sales falling by 47 % over the Labor Day holiday from 2023 levels.

Core inflation, excluding volatile food and fuel prices, grew 0.7 per cent in April, up from 0.6 per cent in March.

China will use policy tools, such as banks ‘ reserve requirement ratio ( RRR ) and interest rates, in a flexible way to step up support for the economy, the Politburo, a top decision- making body of the ruling Communist Party, said in late April.