Close Menu
Nabka News
  • Home
  • News
  • Business
  • China
  • India
  • Pakistan
  • Political
  • Tech
  • Trend
  • USA
  • Sports

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

Two martyred, seven injured in bomb blast in Quetta

June 1, 2025

Russia-Ukraine war: List of key events, day 1,193 | Russia-Ukraine war News

June 1, 2025

Dragon Boat Festival celebrated across China-Xinhua

June 1, 2025
Facebook X (Twitter) Instagram
  • Home
  • About NabkaNews
  • Advertise with NabkaNews
  • DMCA Policy
  • Privacy Policy
  • Terms of Use
  • Contact us
Facebook X (Twitter) Instagram Pinterest Vimeo
Nabka News
  • Home
  • News
  • Business
  • China
  • India
  • Pakistan
  • Political
  • Tech
  • Trend
  • USA
  • Sports
Nabka News
Home » With the Consumer Price Index (CPI) recovering for the fourth consecutive month, has China managed to dispel deflation fears?
China

With the Consumer Price Index (CPI) recovering for the fourth consecutive month, has China managed to dispel deflation fears?

i2wtcBy i2wtcJune 12, 2024No Comments3 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Email WhatsApp Copy Link
Follow Us
Google News Flipboard Threads
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link


China’s National Bureau of Statistics said on Wednesday that the consumer price index (CPI), a gauge of inflation in the world’s second-largest economy, rose 0.3 percent in May from a year earlier but remained well below the government’s target.

China’s CPI has been hovering around zero since April last year, a stark contrast to high inflation in the West and raising deflation concerns as the economy struggles with sluggish consumption that has characterised the country’s uneven recovery since the pandemic.

Meanwhile, China’s producer price index (PPI), which measures the cost of goods leaving factories, fell 1.4% year-on-year in May, the 20th consecutive month of decline but an improvement from a 2.5% drop in April.

“These are broadly in line with expectations. I don’t think deflationary pressures have subsided yet,” said Zhang Zhiwei, president and chief economist at Pinpoint Asset Management.

“The improvement in the producer price index is mainly due to commodity prices such as copper and gold, and does not reflect China’s domestic demand,” Zhang said.

On a month-on-month basis, inflation fell 0.1% in May, turning negative again, after a modest recovery of 0.1% in April, according to NBS data.

Meanwhile, the producer price index rose 0.2% from the previous month in May after declining for six consecutive months.

China’s core inflation, which excludes volatile food and energy prices, rose 0.6 percent year-on-year in May.

Food prices fell 2 percent in May from a year earlier, and food is likely to remain deflationary, although pork and egg prices have started to stabilise “a little bit” month-on-month, Lin Song, an economist at ING Greater China, said Tuesday.

China’s public sector had been under pressure to raise prices for services such as train tickets and utility fees even before May due to cost pressures and tight local finances, analysts said.

High-speed rail ticket prices on some routes are due to rise by around 20 percent on Saturday, and water prices are also expected to rise in some parts of the country.

Fitch Bohua Rating Services associate director for corporates Darius Tan said extended May Day holiday travel likely contributed to the rise in the CPI last month, adding that tourist demand supported both consumer prices and service prices.

However, CPI is expected to remain little changed in China in the coming months as there is no effective domestic demand, Tang added.

Beijing last month announced a package of measures to rescue its struggling real estate sector, including a fund worth 300 billion yuan ($41.4 billion) to help clear excess housing inventory.

A series of new policies in the real estate sector are a step in the right direction, but property sales have not recovered in recent weeks, Zhang said.

“A more comprehensive and proactive policy stance encompassing the fiscal, monetary and real estate sectors may be needed to more effectively boost domestic demand,” he added.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email WhatsApp Copy Link
i2wtc
  • Website

Related Posts

China

Dragon Boat Festival celebrated across China-Xinhua

June 1, 2025
China

Hainan Free Trade Port to begin independent customs operations by end of 2025-Xinhua

May 31, 2025
China

Drumbeats of fitness, tourism echo as dragon boats make waves across China-Xinhua

May 31, 2025
China

How Taklimakan Rally drives adventure, innovation and culture-Xinhua

May 31, 2025
China

International Children’s Day celebrated across China-Xinhua

May 31, 2025
China

Beijing airports hit record high in tax refunds for overseas travelers-Xinhua

May 30, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

Two martyred, seven injured in bomb blast in Quetta

June 1, 2025

Swimming at the 2023 World Aquatics Championships Preview

January 5, 2020

21 Best Smart Kitchen Appliances 2024 – Smart Cooking Devices

January 6, 2020

World Music Day 2023: What Is It and Why Do We Celebrate It?

January 7, 2020
Don't Miss

Russia-Ukraine war: List of key events, day 1,193 | Russia-Ukraine war News

By i2wtcJune 1, 20250

Here’s where things stand on Sunday, June 1: Fighting The governor of Russia’s Bryansk, Alexander…

Enlightened Americans should stay and fight, not leave | Politics

May 31, 2025

Truck accident unleashes 250 million honeybees in northwestern US | Environment News

May 31, 2025

Hegseth warns of China threat as Beijing’s top brass skip Singapore summit | Military News

May 31, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

About Us
About Us

Welcome to NabkaNews, your go-to source for the latest updates and insights on technology, business, and news from around the world, with a focus on the USA, Pakistan, and India.

At NabkaNews, we understand the importance of staying informed in today’s fast-paced world. Our mission is to provide you with accurate, relevant, and engaging content that keeps you up-to-date with the latest developments in technology, business trends, and news events.

Facebook X (Twitter) Pinterest YouTube WhatsApp
Our Picks

Two martyred, seven injured in bomb blast in Quetta

June 1, 2025

Russia-Ukraine war: List of key events, day 1,193 | Russia-Ukraine war News

June 1, 2025

Dragon Boat Festival celebrated across China-Xinhua

June 1, 2025
Most Popular

China’s secret spaceplane releases object into orbit

May 26, 2024

Biden doesn’t want to buy EVs from China, and here’s why.

May 27, 2024

Apple slashes iPhone prices in China, and sales are recovering

May 29, 2024
© 2025 nabkanews. Designed by nabkanews.
  • Home
  • About NabkaNews
  • Advertise with NabkaNews
  • DMCA Policy
  • Privacy Policy
  • Terms of Use
  • Contact us

Type above and press Enter to search. Press Esc to cancel.