According to official data released on Saturday, China witnessed an acceleration in its inflation rate last month, as the government endeavors to stimulate spending in the world’s second-largest economy.
The Consumer Price Index (CPI) for April recorded a year-on-year increase of 0.3 percent, marking the third consecutive month of remaining in positive territory, as reported by the National Bureau of Statistics (NBS).
This figure surpassed the 0.2 percent rise projected by analysts and represented an uptick from the 0.1 percent increase observed last month.
“The NBS stated in a release, ‘In April, household consumption demand continued to rebound… and the year-on-year increase expanded.'”
Nevertheless, factory gate prices remained entrenched in a deflationary trend persisting since the close of 2022. The Producer Price Index (PPI) experienced a 2.5 percent year-on-year decline.
Chinese policymakers have made concerted efforts to encourage consumer spending, albeit with mixed outcomes thus far.
A real estate sector debt crisis and high unemployment levels have imposed significant economic strain, contributing to a downturn in demand.
Despite setting a GDP growth target of approximately five percent for the year, Beijing has acknowledged the formidable challenge of achieving this goal.
