Home » Prices Stabilize and Consumption Recovers: A Look at CPI and PPI Data in September

Prices Stabilize and Consumption Recovers: A Look at CPI and PPI Data in September

by admin

Prices are running smoothly and consumption continues to recover—focusing on CPI and PPI data in September

Xinhua News Agency, Beijing – Data released by the National Bureau of Statistics on the 13th showed that in September, the national consumer price index (CPI) turned from a year-on-year increase to flat, with a month-on-month increase of 0.2%; the national industrial producer price index (PPI) fell by 2.5% year-on-year, and the decline was 2.5% year-on-year. It narrowed by 0.5 percentage points month-on-month, and domestic prices remained stable.

“In September, the consumer market continued to recover, and the CPI continued to rise month-on-month. However, affected by the higher comparison base in the same period last year, the year-on-year increase turned to flat.” Dong Lijuan, chief statistician of the Urban Department of the National Bureau of Statistics, said.

Among my country’s CPI “basket” commodities, food accounts for a relatively high proportion. Mainly affected by the rise in food prices in the same period last year, food prices fell by 3.2% year-on-year in September, a decline that expanded by 1.5 percentage points from the previous month.

From a month-on-month perspective, the market supply was relatively sufficient before the Mid-Autumn Festival and National Day this year. In September, the food price increase was slightly lower than the historical average for the same period. Dong Lijuan analyzed that as the double festival of the school season approaches, the prices of fresh vegetables and eggs increased by 3.3% and 3.2% month-on-month respectively; the prices of pork, fresh fruits, poultry and other food products were basically stable.

See also  Breakfast in Italy is a "sacred" ritual: turnover worth 8 billion

Pork prices account for a high proportion of food prices and have an important impact on CPI operations. Zhu Zengyong, a researcher at the Beijing Institute of Animal Husbandry and Veterinary Medicine of the Chinese Academy of Agricultural Sciences, said that the fourth quarter is the peak season for pork consumption. As the weather turns cooler, consumer demand for pickles and other products will effectively support pig prices. Pork prices may overall show seasonal rises and falls, narrow Fluctuations occur, but the average price in autumn and winter this year will be lower than the same period last year.

Statistics show that in September, non-food prices rose 0.7% year-on-year, an increase of 0.2 percentage points; they rose 0.2% month-on-month, and the increase was the same as last month. Dong Lijuan analyzed that due to the rise in international oil prices, domestic gasoline prices increased by 2.4% month-on-month; autumn clothing changed seasonally, and clothing prices increased by 0.9% month-on-month.

According to estimates, in September, core CPI excluding food and energy prices rose by 0.8% year-on-year, the same increase as last month. “Since the beginning of this year, the year-on-year growth rate of my country’s core CPI has been fluctuating in a range of around 1%, which shows that although my country’s consumer prices are structurally differentiated, they have generally remained stable.” said Wang Likun, associate researcher at the Institute of Market Economics, Development Research Center of the State Council.

Since the beginning of this year, domestic prices have generally been running at a low level, with CPI rising by 0.4% year-on-year in the first three quarters. However, there were positive changes in price performance in the third quarter. The CPI in August turned from a decrease of 0.3% in the previous month to an increase of 0.1% year-on-year. In September, mainly affected by last year’s high base, the year-on-year increase turned to flat. From a month-on-month perspective, CPI maintained an upward trend from July to September.

See also  No Mega Millions Winner, but Two Tickets Worth Over $650,000 Sold in Southern California

Cong Liang, deputy director of the National Development and Reform Commission, said that low prices require attention, but judging from factors such as price levels, demand recovery, economic growth, and money supply, there is no so-called deflation in the Chinese economy, and it will not occur in the future. Deflation.

From the perspective of industrial producer prices, since this year, due to factors such as the decline in international commodity prices, insufficient domestic demand and a high base in the same period last year, the year-on-year decline in PPI has continued to expand. However, as the market supply and demand relationship improved, the PPI decline narrowed for the first time in July, the PPI decline continued to narrow in August, and the PPI decline further narrowed in September.

From a month-on-month perspective, PPI maintained an upward trend in September, rising by 0.4% month-on-month, and the increase increased by 0.2 percentage points from the previous month. Among them, international crude oil prices continued to rise, driving prices in the domestic oil and natural gas mining industry to rise by 4.1%, and prices in the petroleum, coal and other fuel processing industry to rise by 3.1%. Improved demand and tight supply drove prices in the nonferrous metal smelting and rolling processing industry to rise by 1.2%, and in the coal mining and washing industry, prices rose by 1.1%.

PPI is directly related to corporate performance. Recently, PPI has continued to rise, which will help improve corporate production and operations and boost development confidence. In September, China’s manufacturing purchasing managers’ index (PMI) rebounded for four consecutive months, rising to the expansion range for the first time since April; the production and operation activity expectation index was 55.5%, continuing to be in a relatively high prosperity range.

See also  EU: senior official calls on other countries to ban 5G networks for Chinese companies Huawei and ZTE

“With the implementation of policies and measures to boost the development of the industrial economy, corporate production and operations have steadily advanced, demand for industrial products has gradually recovered, and the superimposed base effect has weakened, the year-on-year decline in PPI in the fourth quarter is expected to continue to narrow.” Wang Likun said.

During the Mid-Autumn Festival and National Day holidays that just passed, the consumer market was very popular and energetic, which will strongly support the stable operation of prices in the future.

“As demand steadily recovers, market confidence gradually increases, economic performance continues to improve, and the low base effect gradually weakens, my country’s overall price level is expected to continue to rise and gradually return to near the annual average level.” Cong Liang said.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy