BEIJING — China’s consumer prices steadied in September as domestic demand continued to recover, according to data released by the National Bureau of Statistics (NBS) on Sunday.
The Consumer Price Index (CPI), a key indicator of inflation, increased by 0.4% year-on-year in September, down from a 0.6% rise in August. The slower growth is attributed to a higher base from the previous year, as noted by NBS statistician Dong Lijuan. On a month-to-month basis, the CPI remained unchanged.
Food prices saw a significant year-on-year increase of 3.3%, marking a rise of 0.5 percentage points from August. In contrast, non-food prices declined by 0.2%, reversing the 0.2% increase observed in the previous month. The decrease in non-food prices was largely driven by a deeper decline in energy costs, alongside reduced tourism prices, particularly in airfares and hotel accommodations.
The data also revealed that the Producer Price Index (PPI), which measures the costs for goods at the factory gate, fell by 2.8% year-on-year in September. Month-over-month, the PPI decreased by 0.6%, a slight improvement from a 0.7% decline in August. Dong attributed these fluctuations to international commodity price changes and insufficient domestic demand.
From January to September, the average PPI decreased by 2% compared to the same period last year. In response to economic challenges, China announced an action plan in March aimed at large-scale equipment upgrades and trade-ins for consumer goods to bolster domestic demand. The government further supported this initiative in July by injecting 300 billion yuan ($42.4 billion) through ultra-long special treasury bonds.
Under this program, factories are encouraged to replace outdated machinery with advanced technology, while consumers are offered subsidies for purchases of automobiles and home appliances.
To stabilize the property market, Minister of Finance Lan Fo’an stated that China will implement a range of fiscal policy tools, including local government special-purpose bonds and tax incentives. These measures are intended to enhance economic stability and support ongoing recovery efforts.