China’s consumer prices have marked an increase for the third consecutive month in April, signifying a revival in domestic demand while the country continues to face economic challenges. The latest data from the National Bureau of Statistics revealed a 0.3 % year-on-year rise in consumer prices, indicating a strengthening consumer sentiment.
Senior Economist Xu Tianchen from the Economist Intelligence Unit commented on the data. He noted that excluding food and energy prices, core inflation grew by 0.7 % in April, reflecting a resurgence in demand, specifically in the services sector.
This uptick in consumer prices shows a positive trend in domestic consumption patterns. In April, the consumer price index (CPI) showed a slight uptick, and the producer price index (PPI) continued its downward trajectory, dropping by 2.5 % year-on-year.
Despite the decline in producer prices, the easing of the PPI slide from the previous month suggests a stabilisation in industrial activity. Analysts caution that Beijing faces ongoing challenges in sustaining momentum, especially amid cooling factory and services activity.
Zhou Maohua, a macroeconomic researcher at China Everbright Bank, said that balancing policy measures to support both demand and supply dynamics would be essential. While domestic demand shows signs of development, challenges reamins in the industrial manufacturing sector, indicating the necessity for a comprehensive approach to economic recovery.
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