China's consumer prices rise for third month, factory deflation persists
China's consumer prices rose in April for a third straight month, while producer prices extended declines, suggesting resilient domestic demand, despite a shaky economic recovery.
In April 2024, China consumer prices April 2024 rose 0.3% for the third month, while the China producer price index decline continued, highlighting a fragile China economic recovery 2024 amid a China housing market slowdown and soft domestic demand.
The closely watched numbers follow official surveys showing cooling factory and services activity, as concerns rise about economic growth losing momentum, weighed down by a protracted housing downturn, boosting the case for more policy support.
The consumer price index (CPI) edged up 0.3 per cent in April from a year earlier, accelerating from a rise of 0.1 per cent in March, data from the National Bureau of Statistics (NBS)
The producer price index (PPI) dropped 2.5 per cent in April from a year earlier, easing from a slide of 2.8 per cent the previous month and compared with a forecast decline of 2.3 per cent.
Domestic housing demand remains soft, with average daily home sales having slumped 47 per cent over the Labour Day holiday from 2023 levels, while jobless fears linger, notably among young people.
Core inflation, excluding volatile food and fuel prices, grew 0.7 per cent in April, up from 0.6 per cent in March.
China will use policy tools, such as banks' reserve requirement ratio (RRR) and interest rates, in a flexible way to step up support for the economy, the Politburo, a top decision-making body of the ruling Communist Party, said in late April.
Source: www.channelnewsasia.com
