country consumer price index Down 0.8% in January On an annual basis, this exceeded the median forecast of a 0.5% decline in a Reuters poll. This is the fourth consecutive decrease. However, on a monthly basis, the CPI rose 0.3% in January compared to December, slightly below the median estimate of a 0.4% rise.
Hao Hong, chief economist and partner at GROW, said: “The market is not completely surprised by the deflationary numbers. Upstream deflationary pressures have been ongoing for more than a year, so upstream pressures are now downstream. That’s because it’s starting to get across to the public.” The investment group told CNBC’s “Street Signs Asia” on Thursday.
He noted that pork prices fell 17.3% year-on-year in January as authorities have aggressively restored supplies of China’s staple meat over the past two years following the fight against swine flu. He pointed out that there was a significant oversupply.
Overall, food prices fell 5.9% year-on-year in January.
The core CPI, which excludes energy and food prices, rose 0.4% in January compared to the same month last year, the bureau said. another statement. According to NBS, on a monthly basis, January grew by 0.3% from December.
NBS said January’s inflation statistics were affected by the high base effect of the Spring Festival and Lunar New Year, and the inflation rate declined in January last year. The festival will be held in February of this year.
Thursday’s article on inflation highlights deep-seated concerns that China is on the brink of deflation. The slump in prices underscores what top Chinese leaders have called a “tortuous” economic recovery after the country emerges from strict zero-coronavirus measures towards the end of 2022.
China is an outlier as most of the world’s major economies struggle with stubbornly high inflation. The latest public-private survey on manufacturing activity reveals that increased market competition is limiting the bargaining power of Chinese companies and driving down production prices.
Consumer confidence and broader growth in China’s economy were hit hard by a downturn in the real estate market after the Chinese government cracked down on developers’ heavy reliance on debt for growth in 2020. There is.
