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“China’s Consumer Prices Record the Lowest Growth in 24 Months in April”

Consumer Prices in China Rise at the Slowest Rate in Two Years

In April, consumer prices in China rose, but at their slowest rate in two years, indicating a weakening of the world’s second-biggest economy. Experts believe that this could be due to various factors, including lower demand, falling commodity prices, and ongoing issues with Covid-19.

According to data from the National Bureau of Statistics, the consumer price index or CPI rose by only 0.1% in April from a year earlier. This was far below the 1.8% increase seen in March, and the market expectations of a 0.9% increase. In addition, it was the weakest rate of inflation since April 2019.

While the price hike in pork, a staple in Chinese cuisine, played a major role in driving up prices in the past two years, it appears to have eased now. In April, pork prices fell by 18.5%, contributing to the subdued CPI number.

On the other hand, the producer price index or PPI rose by 6.8% in April from a year earlier. This was in line with the 6.5% increase seen in March and surpassed market expectations of a 6.5% increase. Despite this, the PPI was also slower than previous months, signaling a slow recovery in the industrial sector.

Experts suggest that the weak CPI reading could be due to various factors. These include lower demand for goods and services, falling prices of commodities such as oil and iron ore, and restrictions due to Covid-19. The dip in CPI is also attributed to a high base effect from last year when prices rose due to pent-up demand after the pandemic lockdowns.

Furthermore, while the PPI showed an increase, it was driven by a surge in commodity prices such as iron ore and copper. The slowdown in China’s manufacturing sector due to global chip shortages could also be impacting the PPI.

Overall, the subdued CPI reading indicates a weaker consumer demand, which could hinder China’s economic growth in the coming months. While the government has signaled a willingness to support the economy, the ongoing Covid-19 situation and other geopolitical tensions could dampen growth.

In conclusion, China’s slowing CPI and PPI rates have caused concerns about the future of its economy. While the PPI remains relatively stable, the CPI indicates weakness in the overall demand for goods and services. As the world continues to grapple with the Covid-19 pandemic, it remains to be seen how China’s economy will fare in the coming months and years.

Sara Marcus
Sara Marcushttps://unlistednews.com
Meet Sara Marcus, our newest addition to the Unlisted News team! Sara is a talented author and cultural critic, whose work has appeared in a variety of publications. Sara's writing style is characterized by its incisiveness and thought-provoking nature, and her insightful commentary on music, politics, and social justice is sure to captivate our readers. We are thrilled to have her join our team and look forward to sharing her work with our readers.
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