China’s consumer prices rose at the slowest pace in more than two years in April, while factory gate deflation deepened, data showed on Thursday, suggesting more stimulus may be needed to boost a patchy post-COVID economic recovery.
The weak consumer price rise reinforces the signals from this week’s trade data suggesting domestic demand remains lackluster.
The consumer price index (CPI) in April rose 0.1% year-on-year, the lowest rate since February 2021, and cooling from the 0.7% annual gain seen in March, the Chinese National Bureau of Statistics (NBS) said.
Producer deflation also deepened last month, which taken together with the CPI data highlights the broader economy’s struggles to rev up after the lifting of COVID curbs in December.
The producer price index (PPI) fell at the fastest clip since May 2020 and was down for a seventh consecutive month, declining 3.6% year-on-year after a 2.5% drop the previous month. That compared with a forecast for a 3.2% fall.
China’s economy grew faster than expected in the first quarter thanks to the lifting of COVID curbs, but the recovery has been uneven. Recent data showed factory activity contracted, while persistent weakness in the property market remains a concern.
The latest data could raise pressure on the People’s Bank of China (PBOC) to cut rates or release more liquidity into the financial system.
Overall inflationary pressures remain low, with core consumer inflation, which excludes volatile food and energy prices, up 0.7%, unchanged from the previous month.
Source: Qatar News Agency