The fall in producer prices in China continued in March

China’s National Bureau of Statistics (UIB) announced March 2023 data on price increases in the country.

As a result, China’s consumer price index (CPI) rose 0.7 percent in March from the same month a year earlier, while the producer price index (PPI) declined 2.5 percent. hundred.

Thus, the drop registered in the last quarter of 2022 in the PPI calculated from the ex-factory prices of manufacturing products also continued in the first quarter of this year.

The decrease in producer prices was due to the contraction of the manufacturing sector in the last months of the year and the loss of activity due to the Covid-19 restrictions. Despite the fact that the restrictions were lifted at the end of 2022, the fact that producer prices are still unstable in the new year is interpreted as a sign that the manufacturing sector has not been able to regain the recovery momentum.

CONSUMER INFLATION UNDER 21 MONTHS

On the other hand, the CPI, which is considered the main indicator of inflation, rose 0.7 percent monthly in March, below expectations for a 1 percent increase.

Consumer prices registered the lowest increase since September 2021.

UIB Senior Statistician Dong Licüen assessed that after the removal of the Kovid-19 restrictions, the supply in the consumer market increased as social production and daily activities were streamlined, leading to a weak price increase.

Food prices rose 2.4 percent in February, while non-food inflation was 0.3 percent.

The government, in its work report presented to the National People’s Assembly on March 5, stated that its goal is to keep inflation around 3 percent this year. (AA)