A China’s consumer inflation accelerated to the highest level in more than three years in February due to the effects of , while producer deflation persisted amid weak demand.
Authorities have been trying to stimulate consumption over the past two years, but analysts say more needs to be done to address the problem. imbalance between offer e demand.
The consumer price index increased 1,3% in February compared to the previous year, in the fifth consecutive month of increase and after an increase of 0,2% in January, according to data from the National Statistics Office released this Monday (9). The rate was highest in 37 months and surpassed the 0.8% increase expected in a Reuters poll.
The nine-day Lunar New Year holiday boosted domestic travel and consumer spendingraising the index with the increase in prices of services.
Flight ticket prices have increased 29,1% compared to the previous year, while those for gold jewelry rose 76,6%according to data from the statistics office.
The core consumer price index, which excludes , rose by 1,8% in February compared to the previous year, compared to the increase in 0,8% in January.
In the monthly comparison, consumer prices advanced 1%against 0.2% in January and expectations of 0.5%.
The economy has been ravaged for years, with protectionist policies of the United States presenting new challenges to authorities.
Beijing has vowed to continue clamping down on excessive competition and ensure a smoother exit from inefficient production capacity in order to stabilize os prices.
However, the economy-wide deflationary impulse continues to put pressure on market margins. sector industrialwhile supporting expectations of sustained price drops, which represents a new scam already trust.
However, there has been some relief in the latest data. The producer price index recorded the smallest annual drop since July 2024, having fallen 0,9% in February. In the previous month it registered a decline of 1,4%and the Reuters poll had predicted a drop in 1,2%.
In a statement, statistics bureau statistician Dong Lijuan attributed the milder producer deflation to factors including stronger prices in advanced and emerging sectorsas well as capacity management in the main industrial sectors.
Producer prices increased 0,4% in February compared to January, driven in part by rising crude oil prices around the world and demand linked to growth in capacity of computingthese Dong.
