PT Solid Gold Berjangka | China Consumer Prices Rise in May as Factory Deflation Continues
ekonomi China CPI y/y PPI y/y (CHN) PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | China’s consumer prices rose in March, holding above zero for four months after the country saw its worst deflationary streak in more than a decade.
The Consumer price Index rose 0.3% from a year earlier, the National Bureau of Statistics said Wednesday, compared with a median forecast of 0.4% in the Bloomberg survey of economists, raising the same modest gains it made in March.
Factory gate prices have been stuck in deflation since late 2022, with the Producer Price Index falling 1.4% from the previous year. Economists surveyed by Bloomberg had expected a 2.5 percent drop after the index fell 1.5 percent in January.
The government has struggled to spur an increase in household spending amid a prolonged property slump and a weak job market. Falling producer prices have squeezed corporate profits and become reluctant to invest. There is also the risk that consumers will be even more reluctant to spend in the hope that goods will be cheaper in the future.
The Chinese economy suffered the longest deflation since the global financial crisis, as domestic demand remained sluggish even after the recovery from the new coronavirus infection. Economists surveyed by Bloomberg forecast consumer prices to rise 0.7 percent this year, far from the official target of 3 percent.
Part of the rise in consumer prices may be due to administrative decisions, not to improved demand. Local governments have increased utility and train fares in recent months, a move that could push the price index higher but leave households with less spending power for other purchases.
Source: Bloomberg