On March 9, 2024, citizens were shopping in a supermarket in Nanjing, Jiangsu Province.
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China’s consumer prices rose for a third consecutive month in April, while producer prices extended their decline, showing that domestic demand remains strong despite a shaky economic recovery.
The closely watched data came after official surveys showed factory and service sector activity cooling, adding to growing concerns that economic growth is losing momentum due to a prolonged housing slump, adding to the case for more policy support.
Data released by the National Bureau of Statistics (NBS) on Saturday showed that the consumer price index (CPI) rose slightly by 0.3% year-on-year in April, accelerating from the 0.1% increase in March. That was higher than the 0.2% growth forecast in a Reuters poll.
CPI rose 0.1% month-on-month, reversing a 1% decline in March and higher than economists’ forecast of a 0.1% decline.
The producer price index (PPI) fell by 2.5% year-on-year in April, down from the 2.8% drop last month, and was expected to fall by 2.3%.
Domestic housing demand remains weak, with average daily home sales during the Labor Day holiday down 47% from 2023 levels, while job loss concerns remain, especially among young people.
Excluding volatile food and fuel prices, core inflation rose 0.7% in April, up from 0.6% in March.
The Politburo, the top decision-making body of the ruling Communist Party, said in the evening that China will flexibly use policy tools such as bank deposit reserve ratios and interest rates and increase support for the economy.
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