China's inflationary pressures build in September, consumer inflation cools Reuters
BEIJING (Reuters) – China's consumer inflation eased unexpectedly in September, while a decline in producer prices widened, increasing pressure on Beijing to roll out more immediate stimulus measures to revive surging demand and faltering economic activity.
Finance Minister Lan Foan told a press conference on Saturday that there would be more “anti-cyclical measures” this year, but officials did not give details on the size of the financial reforms, which investors hope will ease deflationary pressure in the world's second-largest economy.
The consumer price index (CPI) rose 0.4% from a year earlier last month, compared with a 0.6% increase in August, data from the National Bureau of Statistics (NBS) showed on Sunday, missing the forecast for a 0.6% increase in a Reuters poll. . economists.
The producer price index (PPI) fell at its fastest pace in six months, falling 2.8% year-on-year in September, compared with a 1.8% drop the previous month and below the 2.5% drop.
Chinese authorities have stepped up stimulus efforts in recent weeks to stimulate demand and help meet the economic growth target of around 5.0% this year, although some analysts say the measures may provide temporary relief to the economy and stronger measures are needed soon.
The central bank in late September announced the most aggressive financial support measures since the outbreak of the COVID-19 pandemic, including a number of measures to help pull the real estate sector out of a deep, multi-year recession, including a reduction in mortgage rates.
With little new from the Ministry of Finance's meeting on Saturday, some analysts are now hoping that a meeting of China's parliament expected in the coming weeks will present concrete proposals.
However, many China watchers say Beijing also needs to firmly address deep-rooted structural problems such as overcrowding and abuse.
Excessive domestic investment and weak demand have driven down prices and forced companies to cut wages or lay off workers to cut costs.
The CPI was unchanged month-on-month, compared with a 0.4% gain in August and below the 0.4% rate of increase.
Food prices rose 3.3% year-on-year in September compared to a 2.8% increase in August, while non-food prices fell 0.2%, reversing the 0.2% increase in August.
Among non-food items, the decline in energy prices has deepened, and tourism prices have fallen from a record high with declining airfares and increased hotel room rates, NBS said in a statement accompanying the article.
Inflation, which excludes fluctuations in food and fuel prices, stood at 0.1%, down from 0.3% in August, also indicating that inflationary pressures are increasing.
