Xinhuanet

China Focus: Inflation, producer price trends a broad positive for Chinese economy

Source: Xinhua 2016-10-14 16:57:54

CHINA-CPI-RISE (CN)

A saleswoman arranges vegetables at a supermarket in Cangzhou City, north China's Hebei Province, Oct. 13, 2016. China's consumer price index (CPI), a main gauge of inflation, grew 1.9 percent year on year in September, up from 1.3 percent in August, the State Bureau of Statistics announced on Friday. (Xinhua/Mou Yu)

BEIJING, Oct. 14 (Xinhua) -- China's steady inflation data and firmer producer prices in September are broadly positive evidence for the economy.

China's consumer price index (CPI), the main gauge of inflation, grew 1.9 percent year on year in September, up from the 1.3 percent rise in August, the National Bureau of Statistics (NBS) said Friday.

For the fifth-consecutive month, figures were lower than the 2.3 percent registered in April, when the CPI reached its highest level since July 2014.

On a month-by-month basis, the CPI rose 0.7 percent in September.

NBS statistician Yu Qiumei largely attributed the moderate inflation growth in September to rising food prices.

The price of fruit and vegetables rose 7.5 percent and 6.7 percent, respectively, year on year in September, compared with 3.9 percent and 0.6percent decreases in August.

In addition, the price of services also increased in September, with education services prices rising 3.2 percent year on year, compared with a 2.2 percent rise in August.

Since January 2016, the CPI has been calculated using a new comparison base and includes more products and services while slightly reducing the weighting of food.

"Today's data suggest that deflation pressures are continuing to gradually ease in the Chinese economy. This has come on the back of stronger demand (due to faster infrastructure investment, and property sector rebound), as well as supply adjustment in the industrial sector," said an HSBC report.

Meanwhile, China's producer price index (PPI), which measures costs at the factory gate, ended a 54-month straight decline in September, according to the NBS.

The reading increased 0.1 percent year on year, the first positive reading since March 2012, said the NBS.

On a month-by-month basis, it increased 0.5 percent amid warming prices in many industries surveyed. The number of industries with increasing prices rose from eight to 25, NBS senior statistician Yu Qiumei said.

The change is closely linked to higher prices in key industries, including ferrous metals metallurgy and coal mining, said Yu in a statement.

Prices in the coal mining industry increased 4.1 percent year on year, increasing for the first time since July 2012, while the ferrous metals metallurgy and rolling industry saw prices increase by 10.1 percent year on year.

The positive reading is also attributable to the country's capacity cutting and destocking, which trimmed oversupply, and recovering commodity prices of crude oil, iron ore and nonferrous metals in the global market, Yu said.

"The first positive reading for the producer price index since the start of 2012 is a broad positive for the economy, boosting profits and lowering real borrowing costs," said Tom Orlik, Chief Asia Economist of Bloomberg.

Jiang Chao, a strategy analyst at Haitong Securities, noted that factors including rising prices of coal and steel suggest the PPI will continue to rise in October with a possible 0.7 percent year on year increase.

While the pace of the improvement is faster than expected in September, there are still risks on the horizon in the next few months, said the HSBC report, noting that reviving private sector business investment remains a key policy challenge in the near term.

Given lingering headwinds to growth, policy makers should retain their easing bias in the near term, it said, forecasting that fiscal policy was expected to remain expansionary with a greater focus on policies that will have a bigger multiplier effect on lifting private sector confidence and investment.

During his three-day inspection visit of Macao Special Administrative Region, Chinese Premier Li Keqiang said on Tuesday that China's industrial growth, corporate profits and investment, especially private investment, were stabilizing and recovering.

The economy in the third quarter not only continued the growth momentum in the first half of this year but also featured some positive changes, the premier said, adding that China was fully capable of maintaining medium to high speed growth.

Related:

China's producer price ends decline streak in Sept.

BEIJING, Oct. 14 (Xinhua) -- China's producer price index (PPI), which measures costs for goods at the factory gate, ended a 54-month straight decline in September, official data showed Friday.

The reading increased 0.1 percent year on year, the first positive reading since March 2012, according to the National Bureau of Statistics (NBS).  Full story

China Focus: Q3 trade growth rebounds, pressure remains

BEIJING, Oct.13 (Xinhua)-- China's trade growth rebounded in the third quarter of this year thanks to policy support and a stabilizing economy, but is still facing complex domestic and global challenges.

Foreign trade in the first three quarters was down 1.9 percent from a year earlier to reach 17.53 trillion yuan (2.61 trillion U.S.dollars), with exports dropping 1.6 percent and imports falling 2.3 percent,according to figures from the General Administration of Customs (GAC) on Thursday.   Full story

 
China Focus: Inflation, producer price trends a broad positive for Chinese economy
                 Source: Xinhua | 2016-10-14 16:57:54 | Editor: huaxia

CHINA-CPI-RISE (CN)

A saleswoman arranges vegetables at a supermarket in Cangzhou City, north China's Hebei Province, Oct. 13, 2016. China's consumer price index (CPI), a main gauge of inflation, grew 1.9 percent year on year in September, up from 1.3 percent in August, the State Bureau of Statistics announced on Friday. (Xinhua/Mou Yu)

BEIJING, Oct. 14 (Xinhua) -- China's steady inflation data and firmer producer prices in September are broadly positive evidence for the economy.

China's consumer price index (CPI), the main gauge of inflation, grew 1.9 percent year on year in September, up from the 1.3 percent rise in August, the National Bureau of Statistics (NBS) said Friday.

For the fifth-consecutive month, figures were lower than the 2.3 percent registered in April, when the CPI reached its highest level since July 2014.

On a month-by-month basis, the CPI rose 0.7 percent in September.

NBS statistician Yu Qiumei largely attributed the moderate inflation growth in September to rising food prices.

The price of fruit and vegetables rose 7.5 percent and 6.7 percent, respectively, year on year in September, compared with 3.9 percent and 0.6percent decreases in August.

In addition, the price of services also increased in September, with education services prices rising 3.2 percent year on year, compared with a 2.2 percent rise in August.

Since January 2016, the CPI has been calculated using a new comparison base and includes more products and services while slightly reducing the weighting of food.

"Today's data suggest that deflation pressures are continuing to gradually ease in the Chinese economy. This has come on the back of stronger demand (due to faster infrastructure investment, and property sector rebound), as well as supply adjustment in the industrial sector," said an HSBC report.

Meanwhile, China's producer price index (PPI), which measures costs at the factory gate, ended a 54-month straight decline in September, according to the NBS.

The reading increased 0.1 percent year on year, the first positive reading since March 2012, said the NBS.

On a month-by-month basis, it increased 0.5 percent amid warming prices in many industries surveyed. The number of industries with increasing prices rose from eight to 25, NBS senior statistician Yu Qiumei said.

The change is closely linked to higher prices in key industries, including ferrous metals metallurgy and coal mining, said Yu in a statement.

Prices in the coal mining industry increased 4.1 percent year on year, increasing for the first time since July 2012, while the ferrous metals metallurgy and rolling industry saw prices increase by 10.1 percent year on year.

The positive reading is also attributable to the country's capacity cutting and destocking, which trimmed oversupply, and recovering commodity prices of crude oil, iron ore and nonferrous metals in the global market, Yu said.

"The first positive reading for the producer price index since the start of 2012 is a broad positive for the economy, boosting profits and lowering real borrowing costs," said Tom Orlik, Chief Asia Economist of Bloomberg.

Jiang Chao, a strategy analyst at Haitong Securities, noted that factors including rising prices of coal and steel suggest the PPI will continue to rise in October with a possible 0.7 percent year on year increase.

While the pace of the improvement is faster than expected in September, there are still risks on the horizon in the next few months, said the HSBC report, noting that reviving private sector business investment remains a key policy challenge in the near term.

Given lingering headwinds to growth, policy makers should retain their easing bias in the near term, it said, forecasting that fiscal policy was expected to remain expansionary with a greater focus on policies that will have a bigger multiplier effect on lifting private sector confidence and investment.

During his three-day inspection visit of Macao Special Administrative Region, Chinese Premier Li Keqiang said on Tuesday that China's industrial growth, corporate profits and investment, especially private investment, were stabilizing and recovering.

The economy in the third quarter not only continued the growth momentum in the first half of this year but also featured some positive changes, the premier said, adding that China was fully capable of maintaining medium to high speed growth.

Related:

China's producer price ends decline streak in Sept.

BEIJING, Oct. 14 (Xinhua) -- China's producer price index (PPI), which measures costs for goods at the factory gate, ended a 54-month straight decline in September, official data showed Friday.

The reading increased 0.1 percent year on year, the first positive reading since March 2012, according to the National Bureau of Statistics (NBS).  Full story

China Focus: Q3 trade growth rebounds, pressure remains

BEIJING, Oct.13 (Xinhua)-- China's trade growth rebounded in the third quarter of this year thanks to policy support and a stabilizing economy, but is still facing complex domestic and global challenges.

Foreign trade in the first three quarters was down 1.9 percent from a year earlier to reach 17.53 trillion yuan (2.61 trillion U.S.dollars), with exports dropping 1.6 percent and imports falling 2.3 percent,according to figures from the General Administration of Customs (GAC) on Thursday.   Full story

分享
China Focus: China economy further stabilizes with booming new engines
China economy stabilizing, additional policy support possible: report
China consumer prices up 1.9 pct in September
China consumer prices up 1.9 pct in September
Guo Shengkun meets State Secretary of German Interior Ministry
Guo Shengkun meets State Secretary of German Interior Ministry
Couple enjoys wedding blended with both traditional and western customs
Couple enjoys wedding blended with both traditional and western customs
Smog envelopes capital of China
Smog envelopes capital of China
4th National School Earthquake and Tsunami Drill held in Lima, Peru
4th National School Earthquake and Tsunami Drill held in Lima, Peru
People participate in Public Pinball Tournament in Vancouver
People participate in Public Pinball Tournament in Vancouver
Aftermath of Matthew's attack in Haiti
Aftermath of Matthew's attack in Haiti
Namibia postpones exams due to teachers' strike
Namibia postpones exams due to teachers' strike
Back to Top Close
010020070750000000000000011102351357546741