BEIJING: Despite a shaky economic recovery, China’s consumer prices increased in April for the third consecutive month, while producer prices declined. This suggests resilient domestic demand.
The closely watched figures came after official surveys indicating a factory and service activity slowdown. This strengthens the argument for more policy support as worries about the economy’s potential to slow down due to a prolonged housing downturn grow.
According to data released by the National Bureau of Statistics (NBS) on Saturday, May 11, the consumer price index (CPI) increased by 0.3% in April compared to the same month last year, picking up speed from a 0.1% increase in March. That exceeded a 0.2% increase predicted in a Reuters survey.
The CPI increased by 0.1% from the previous month, reversing a 1% decline in March and exceeding the 0.1% decline that economists had forecast. The producer price index (PPI) decreased by 2.5 percent in April compared to the same month a year earlier. This was less than the 2.8% decline that was predicted.
Domestic housing demand remains soft, with average daily home sales slumping 47 percent over the Labour Day holiday from 2023 levels. Jobless fears linger, notably among young people. Core inflation, excluding volatile food and fuel prices, grew 0.7 percent in April, up from 0.6 percent in March.
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