China Consumer Prices Rise, Producer Prices Decline in April

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Consumer prices in China rose for the third consecutive month in April, indicating an increase in domestic demand.
Consumer prices in China rose for the third consecutive month in April, indicating an increase in domestic demand.

Consumer prices in China increased for the third consecutive month in April, indicating a rise in domestic demand.

April’s CPI rose by 0.3% year-on-year, surpassing expectations and highlighting improved consumer confidence.

Core Inflation and CPI Movement:

Core inflation, banning volatile food and fuel prices, grew by 0.7% in April, reflecting a comeback in demand, particularly in services.

Overall, the consumer price index (CPI) rose by 0.1% from the previous month, defying forecasts of a decline and reversing March’s drop.

Challenges and Policy Support:

Despite positive CPI trends, challenges persist, including cooling factory and services activity and a housing crisis.

Municipal debt and fiscal strains on local governments may contribute to potential price hikes by utility companies.

The producer price index (PPI) dropped by 2.5% year-on-year in April, extending a prolonged period of declines.

Government Response and Economic Outlook:

China’s central bank aims to maintain a flexible monetary policy to support moderate recovery in consumer prices and consolidate economic growth.

Policy tools such as reserve requirement ratios (RRR) and interest rates stimulate growth, aligning with the government’s economic targets.

Achieving China’s economic growth target of about 5% in 2024 may require further policy support amid ongoing challenges.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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