Consumer Prices in China Experienced Moderate Increase in September
In September, China's consumer prices experienced moderate growth. Analysts suggest that following the implementation of strong new policies designed to boost the economy, market demand is expected to increase.
TroibNews 
In September, China's consumer prices experienced a moderate increase. Experts suggest that market demand is expected to rise due to the implementation of robust new policies designed to stimulate the economy.
According to data from the National Bureau of Statistics, the Consumer Price Index (CPI), an important indicator of consumer inflation, increased by 0.4 percent year over year while remaining unchanged month over month in September. This follows a slight rise in August, indicating a trend of stable price levels for household items.
Prices for fresh vegetables and pork surged due to weather-related disruptions, while a decrease in travel following the end of summer vacation resulted in lower airfares and hotel costs.
The Producer Price Index (PPI), which measures inflation at the wholesale level, fell by 2.8 percent in September compared to the same month last year. This decline is likely attributed to decreasing global commodity prices and waning domestic demand, as explained by Dong Lijuan, chief statistician at the NBS.
The month-over-month decline in the PPI for September was narrowed by 0.1 percentage point compared to the previous month.
Dong noted that the real estate market is still undergoing an adjustment phase, combined with extreme weather in certain areas, which has contributed to weak demand for building materials.
However, she also mentioned that expectations of policy stimulus have led to signs of recovery in steel demand during the latter half of September.
In late September, China's central bank revealed a series of significant monetary policy changes aimed at enhancing the economy. The nation's top economic planner is set to advance 200 billion yuan from the 2025 government budget. Additionally, the Ministry of Finance announced that it would intensify fiscal stimulus measures.
"Combined with existing policies and new, more aggressive measures, we expect consumer and producer confidence to improve significantly," commented Bruce Pang, chief economist of JLL Greater China, in a note to CN.
He added that this trend should lead to a gradual rise in market demand and further stabilization and growth in overall social demand.
Debra A Smith for TROIB News
According to data from the National Bureau of Statistics, the Consumer Price Index (CPI), an important indicator of consumer inflation, increased by 0.4 percent year over year while remaining unchanged month over month in September. This follows a slight rise in August, indicating a trend of stable price levels for household items.
Prices for fresh vegetables and pork surged due to weather-related disruptions, while a decrease in travel following the end of summer vacation resulted in lower airfares and hotel costs.
The Producer Price Index (PPI), which measures inflation at the wholesale level, fell by 2.8 percent in September compared to the same month last year. This decline is likely attributed to decreasing global commodity prices and waning domestic demand, as explained by Dong Lijuan, chief statistician at the NBS.
The month-over-month decline in the PPI for September was narrowed by 0.1 percentage point compared to the previous month.
Dong noted that the real estate market is still undergoing an adjustment phase, combined with extreme weather in certain areas, which has contributed to weak demand for building materials.
However, she also mentioned that expectations of policy stimulus have led to signs of recovery in steel demand during the latter half of September.
In late September, China's central bank revealed a series of significant monetary policy changes aimed at enhancing the economy. The nation's top economic planner is set to advance 200 billion yuan from the 2025 government budget. Additionally, the Ministry of Finance announced that it would intensify fiscal stimulus measures.
"Combined with existing policies and new, more aggressive measures, we expect consumer and producer confidence to improve significantly," commented Bruce Pang, chief economist of JLL Greater China, in a note to CN.
He added that this trend should lead to a gradual rise in market demand and further stabilization and growth in overall social demand.
Debra A Smith for TROIB News
