BEIJING: In the second-largest economy in the world, China’s consumer prices dropped and factory gate prices decreased significantly faster than anticipated in September. Both indicators continued to show consistent deflationary pressures.
According to data from the National Bureau of Statistics( NBS ) that was released on Friday( Oct 13 ), the consumer price index ( CPI ) remained unchanged from a year prior in September, falling short of the Reuters poll’s prediction of an increase of 0.2 %. CPI increased by 0.1 percent in August.
Core prices for the entire season, excluding food and fuel costs, was 0.8 percent, in line with August.
Although the rate of decline slowed starting in August, the producer price index( PPI ) decreased by 2.5 percent from a year earlier, making it the 12th consecutive month in negative territory. Economic experts had forecast a 2.4 % decline in September.
The negative stress in China also poses a serious threat to the economy, according to” CPI prices at zero.” Without a major boost from financial help, the recovery of domestic demand is not robust, according to Zhiwei Zhang, Pinpoint Asset Management’s chief economist. ” The impact of the property market slowdown on consumer confidence continues to have an impact on family need.”
Food prices decreased by 3.2 % from last year, continuing their 1.5 percentage point decline since August and lowering the CPI. Pork prices decreased by 22 %, which is a bigger drop than August’s 17.9 % decline.
Although indications that China’s economy is stabilizing are beginning to appear, worries about the healing ‘ sustainability continue.
Due to the government’s home problems and low external demand, the IMF on Tuesday lowered its development projections for China for this year and the following year.
Despite a number of scheme support measures, China’s real estate market has not yet recovered from its severe slump.
Although this was below official estimates, traveling during the current mid-Autumn and National Day holiday periods increased by 4.1 percent from pre-pandemic 2019 levels.
China’s post-pandemic restoration slowed to a walk in recent months, but it has since rolled out several policy measures to revive its faltering business.
China’s” Big Four” state banks announced stake increases by their state parent, Central Huijin Investment, on Wednesday in an effort to boost investor confidence.